Lima, July 3, 2021.- The Minister of Economy and Finance, Waldo Mendoza, claims that by the end of 2021 the gross domestic product (GDP) will grow more than 10%, and we will be once again one of the countries that will lead the expansion.
The Peruvian economy has already recovered from the losses caused last year by the pandemic, and it is the highest recovery in Latin America, pointed out the representative of the Ministry of Economy and Finance (MEF), Waldo Mendoza.
“By the end of 2021 the gross domestic product (GDP) will grow more than 10%, and we will once again be one of the countries that will lead the economic expansion of the region,” he commented.
He affirmed that there are many reasons to be optimistic about the economic recovery. “Peru is a small economy and open to international trade; therefore, events in the world matter significantly to us. This year the global production will grow by approximately 6%, one of the highest recorded since the 1970s.”
He added that there will be a greater demand for Peruvian products in the world. “We will be able to sell at good prices and we will export considerably.”
In relation to public investment, Mendoza stated that the dynamic of resource execution is already unstoppable. “Regional and municipal governments have budgets and experience, and they have the support of the MEF. For this reason, public expenditure this year should grow by over 20%,” he stated.
He also mentioned that credit support will continue to be provided because everything has basically been arranged.
“Reactiva Peru credits were rescheduled, as well as the business support funds (FAE) for micro and small-sized companies. New programs were created, so credit behavior will continue in a very positive way,” he noted.
As for the vaccination process, he stated that it is ongoing at a rate of 250,000 doses per day.
“The next administration will have to speed up this process. Currently, around 12 million vaccines are being administered and the next government will administer more than 50 million doses, so we firmly believe that the systems will be perfected and immunization will be more accelerated,” stated the Minister.
He pointed out that, if so, a large part of the population, especially young people, will be able to travel and work with more confidence. “Economic activities will develop at their full potential.”
He affirmed that these good results should be maintained. “The policies are already designed, make sense, give good results. Therefore, we believe that the country, as it has been in the last two decades, will continue to lead economic growth in the region.”
Minister Mendoza recommended the next Congress must have an office of experts in economic matters to review the bills submitted by congressmen in this field.
“We need something like this in Peru because good intentions are not enough to have laws,” he said.
He gave as an example a similar body that –he mentioned– exists in the U.S. Parliament and that provides advice to all political groups.
“There are laws issued by Congress on economic issues that were observed by the Executive Branch.”