The economy is not and will not be immune to the consequences of the recent scandal in the Public Ministry and the complaint against the Attorney General, Patricia Benavidesfor allegedly leading a criminal organization that played against the interests of some congressmen.
Alex ContrerasMinister of Economy and Finance, recognized that the constant political instability has slowed down the potential of the GDP Peruvian; and the revelations of corruption dynamite the—already weakened—confidence and private investment.
“We want to recover this capacity for growth that Peru has had in recent years; Unfortunately, the political context has not helped, it has been something that has taken away,” he told the press after his presentation at the Americas Society / Council of the Americas (AS / COA) event.
The official called what happened in the Prosecutor’s Office “despicable,” and recalled that corruption costs the country US$24 billion annually.
Alonso Segura, former Minister of Economy, maintains that “the turbulence is very strong” and will negatively impact business confidence, since without political stability, making investment, business or job creation decisions becomes complicated because it is not known whether A new wave of protests will be unleashed.
“The mafias are controlling the independent powers of the State. “They are destroying the country,” he said for this medium.
Back to reality
The numbers are clear: private investment has fallen for the fifth consecutive quarter, mining investment will decline almost 20% and pessimism reigns (see infographic); but President Dina Boluarte and her ministers insist with an optimistic speech.
Contreras, for example, remains secretive when asked about his GDP projection for this year, considering that various entities and analysts even expect it to end below 0%, but he expressed that “important conditions for more investments” are generated; while Foreign Minister Javier González-Olaechea stressed that we are “a reliable country with constitutional and legal guarantees for foreign investment.” Assuming the presidency of APEC 2024 attests to this, he stressed.
Paquetazo will respect the environment
Within the Executive’s responses to encourage private investment, regulatory and procedural flexibilities will be given to accelerate mining investment. Contreras Miranda told La República that environmental regulatory frameworks will not be violated.
“(The package) will not impact environmental issues. All investment acceleration routes have the component of not losing quality standards. No rights of environmental communities will be affected,” she mentioned.
The keys
Impact. It is expected to award US$7,976 million in projects by 2024 under the modality of Public-Private Associations.
Briefcase. By 2025, US$4,646 million are expected in the construction of seven mining projects.
Vision. Average GDP between 2024 and 2026 will be 3.1%, according to calculations by the MEF.
Reactions
Dina Boluarte, president of the Republic
“Here your investments will be protected and respected. A predictable and business facilitating State implies modifying some regulations that facilitate licenses to operate in the country.”
Alonso Segura, former Minister of Economy
“How do you make investment, business or job creation decisions when you don’t know if this is going to trigger a new election because the Government falls or Congress closes?”
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.
