Peru’s economic performance is better only when compared to Argentina and Venezuela at the regional level, according to the recent World Competitiveness Rankingprepared by the Centrum PUCP and the Institute of Management Development (IMD) of Switzerland.
The decline in this indicator is significant, considering that we went from position 40 to 53 in one year. The rest of the Latin American countries best positioned in economic criteria are Mexico, Colombia and Brazil, mainly.
The reasons for the Peruvian slowdown? The scant advances in international trade and employmentwhich reflect the importance of continuing to strengthen the investment market and maintain adequate price stability.
Only by following this recipe can the reputation of Peruvian competitiveness be improved to promote sustainable and equitable economic growth, they added from Centrum PUCP.
Where else did we go back?
In infrastructure, Peru ranks 60th globally —out of 64 countries included in the ranking—.
We only surpass Venezuela in the region. The pending task of the Government of Dina Boluarte, says the report, is to articulate the development and improvement of roads, transportation, energy and telecommunications, key pieces to boost competitiveness.
In general lines — considering apart from those mentioned the efficiency of the Government and business — we fell from box 54 to 55 in one year, but even so, Peru is the second most competitive country in Latin America, surpassed only by Chile (44).
Luis del Carpiodirector of the Information Transfer Office (OTRI) of Centrum PUCP, points out that each pillar of the ranking requires long-term strategic planning and effective coordination between levels of government and economic sectors.
“By our side, we must continue working to strengthen our institutional framework and have a consistent economic performance that generates business confidence at an international level”, he said.
MEF trusts in a vigorous recovery
The head of the Ministry of Economy and Finance (MEF), Alex Contreras, despite the contraction of the GDP so far this year — it fell 0.24% from January to April —, for the third and fourth quarters he expects a “very strong” because “there are clear signs of recovery and resilience.
“There are isolated factors such as the drop in fishing due to climatic or agricultural factors, because fewer products were planted last year, but the trend is toward recovery,” he said, not without first acknowledging that for the second quarter of this year there will be a performance low national production. Even so, they ready their arsenal for the Global El Niño.
Regarding whether they will change their GDP projection, he said that they will present a new result in August.
Contreras also announced that for June inflation is expected to drop to 6.7% year-on-year — it currently stands at 7.9% —. Thus, in the specific case of chicken, expect the price to drop from S/7.87 to S/5.28 per kilo for this month and, with respect to potatoes, to drop to S/0.80.
“When inflation subsides and we see that there is no pressure of this type, monetary policies will make the appropriate decisions and think about the recovery of our economy,” he argued.
The data
Collapse. The Central Reserve Bank (BCRP) expects private investment to fall 2.5% this year. Mining would contract 18.9% and non-mining 0.5%.
Effect. Construction fell 5.12% during April and, in the accumulated since January, 9.81%.
Ancón Industrial Park: the key
Alex Contreras noted that the Ancon Industrial Park (PIA) will strengthen the industrial hub with the Chancay and Callao megaports, for which signals are provided to investors to bet on this project in the north of the capital.
According to ProInversión, there are five global companies that have shown interest in the PIA, valued at US$750 million.
It is expected to be awarded for the third quarter of this year. The PIA will generate more than 50,000 direct formal jobs in firms of various sectors and will consolidate the emergence of Ancón as a development hub.
Infographic – The Republic
Source: Larepublica
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