MEF considers that the economy is recovering: what are the reasons?

After recognizing the weakness of the Government, compared to its counterpart, the Congress of the Republic, the head of the Ministry of Economy and Finance (MEF), José Arista, reported, through his account in X, that his portfolio seeks to recover the investor confidence, “which requires the achievement of consensus and joint work.” “The Government promotes public policies to promote investment, generate quality employment and well-being of citizens,” he highlighted.

In that sense, the head of the office located in Jirón Junín, Cercado de Lima, highlighted that economic activity is recovering in a context of better prices for export products. Thus, for example, he explained that with the current price of copper – the main product of the Peruvian export basket – an annual growth of 20% is observed in April, which reached its highest level in two years. Favorable prices are also observed for agricultural export products such as cocoa and coffee.

“The price of cocoa grows 175% annually in April (US$8,797 per MT), and reached historical highs in March (almost US$10,000 per MT). The price of coffee also grows 22% annually in April”, highlighted Arista Arbildo. In addition, Peru is the world’s leading exporter of blueberries and quinoa grains and could occupy eighth place as a fruit exporter this year, according to the Ministry of Foreign Trade and Tourism (Mincetur).

Likewise, Arista stressed that after overcoming the El Niño phenomenon, the best conditions allowed the start of the anchovy fishing season in mid-April, “which is projected to be very favorable.” According to available data, as of April 25, 530,000 MT of anchovy had already been captured compared to all of April 2023, which was only 6,000 MT.

Meanwhile, the tourism sector, which drives the local economy in different departments of Peru, also showed a recovery. Along these lines, the arrival of 768,000 foreign tourists was identified in the first quarter of the year alone, which represents a growth of 62.4%.

Tax collection

In April, tax collection would have grown by close to 4%, the head of the MEF announced, an “encouraging trend,” in his own words. It is important to specify that Last March, tax revenues contracted by 25.4%some S/3,536 million less for the State coffers compared to the similar period in 2023. Already in the first quarter of the year, collection falls by 10.4%according to official information from Sunat.

At the end of 2023, tax collection sank 12%, due to poor economic progress and congressional laws eroding the country’s income, according to the tax authority.

“We need to generate a shock of confidence, and from the MEF we will continue to promote and accompany private investment, and generate the best conditions to promote growth,” Arista stated on his social networks.