Peruvian economy would grow 3.1% this year, according to the MEF

After growing less than expected in 2022, the Ministry of Economy and Finance (MEF) estimates that this year the GDP will reach the threshold of 3.1% thanks to external factors such as the China revivalthe restraint in the rates of the Federal Reserve of the United States and stable prices of the commodities, and by the internal recovery of the levels of private investment.

Alex Contreras, head of the MEF, emphasized that seeks to “restore confidence and coordinate with the private sector” in a year in which Proinversión has a portfolio of 16 projects for US$3,000 million under the modalities of Public-Private Associations (APP) and Projects in Assets.

By 2024, the goal is to award 38 projects per $9 billion.

Along these lines, the official announced that private investment —which closed last year with a 0.5% drop, worsened in the fourth quarter with the outbreak of the social conflicts due to the demand for a constituent assembly—will rise this year by 3% “if one cleans up” the effects of the pandemic and post-pandemic recovery.

“The truth is that The last decade has been quite mediocre in investment growth and this has been reflected in a moderation of potential growth. Decades ago we could grow 5% or 6%; Now it’s hard to think of growth greater than 3%,” she said.

Powers to regulate investments via PPP

Yesterday, the delivery of legislative powers to the Executive Branch was made official so that they can operate in economic matters for 90 days, and thus encourage reactivation.

For example, the promotion of private investment will be regulated through Public-Private Partnerships and Projects in Assetsin order to optimize the procedure, evaluation and support of the budgetary capacity for the development of initiatives.

Said delegation of powers will allow —according to Contreras— to improve the path of private investment.

“It is within the short-term agenda to take measures to generate a ‘fast track’, both for public investment projects and private investment projects,” he told the press after the event. “Promoting investment to boost the economy”of Proinversión.

Ratifies defense of Sunat

Regarding the ruling of the Constitutional Court (TC), which stops the collection of default interest from companies that maintain debts with the Peruvian State whose controversies remain unresolved in court, Contreras Miranda reaffirmed that the MEF “will defend the rights of Peruvians so that the debts that Sunat has justly earned also incorporate interestwhich is fair”. Let us remember that the State would lose S/12,000 million in collection.

Key week to reverse the ruling of the TC

This week, the Constitutional Court would go back on its recent ruling, which prohibits the collection of default interest from companies that owe the State, according to sources in the sector for La República.

A few days ago, the former head of the MEF and current president of the Fiscal Council, Carlos Oliva, announced that on Thursday, March 2, they will issue a statement rcasting the rulingsince a scenario is brewing in which “everyone” will want to take their case to the courts to ‘get around’ the treasury.

It also transpired that the attorney of the PJ, Marco Palominostill does not ask for annulment of the ruling of the TC against Sunat.