The president of the Central Reserve Bank of Peru (BCRP), Julio Velarde, estimated that by 2023 public investment will remain at 0% despite the Government’s announcements regarding reactivation, such as Impulso Perú de Kurt Burneohead of the Ministry of Economy and Finance (MEF).
“Next year we do expect 0%. Although public investment association measures have been announced that will help, it would be to compensate for the fall in investment in local and regional governments”, he said in the presentation of the Inflation Report.
Also, he explained that The forecast for 2023 is explained by the lower injection of resources by subnational governments, seen in periods prior to the year following the regional and municipal elections, due to the “delay in executing new projects”.
“Yes, we consider the impact (of Impulso Peru) but there are no magic bullets. These are basic measures that aim to improve investment management. That is why we project that public investment will not fall because it would usually have fallen with the new authorities”, he said.
Private investment will have zero growth this year
Velarde added that private investment will also remain at 0% this year, with a 3.7% drop in mining and a slight rebound of 0.5% in that of other sectors.
While, by 2023, this would rise 1.8%, but a 16.2% contraction is expected in the mining company due to the completion of the Quellaveco project.