Julio Velarde, president of the Central Reserve Bank of Peru (BCRP), assured that our country is not in a technical recession despite the arguments of various specialists after the 0.45% drop in GDP in the first half of the year.
“It’s hard to call it a technical recession (…) It is true that we have fallen in two quarters but there are other factors that are not being fulfilled (to consider that we are in a technical recession)“, he said at the 2023 Economic Forum organized by the American Chamber of Commerce of Peru (AmCham Peru).
He even pointed out that despite the two negative quarters, the second quarter “has grown compared to the first.”
What are these factors? According to the banker, formal employment despite the slowdown in job creation in the private sector “has been growing”: as of June 2023 it reached 4.6%, its lowest figure since October 2021.
In addition, there is the gradual recovery of business expectations, which in the long term are more optimistic than in the next three months, where pessimism about the future of the economy still prevails.
“Private consumption continues to grow, although at lower rates. Private investment has fallen and public investment is not going to be strong either, but there is still a market that continues to grow but at a lower rate,” he added.
In that line, Julio Velarde announced that the BCRP expects the Peruvian economy to grow around 2% in the third quarter, and close to 4% for the fourth. When asked by the press about the sectors that would drive this result, he said that “in a month he will speak” (referring to the presentation of the Inflation Report).
Source: Larepublica
Alia is a professional author and journalist, working at 247 news agency. She writes on various topics from economy news to general interest pieces, providing readers with relevant and informative content. With years of experience, she brings a unique perspective and in-depth analysis to her work.
