The strength of the Executive Branch to relieve the country in a context of economic recession has been, once again, put on the table. The president of the Central Reserve Bank, Julio Velarde, assured that the Ministry of Economy and Finance (MEF) needs to recover the technical management of its sector, in the face of laws promoted from the Congress and the Constitutional Court (TC) to its detriment.
During the XV Symposium-International Mining Meeting, organized by the National Society of Mining, Petroleum and Energy (SNMPE), andThe head of the highest issuing entity criticized that the political factor prevails when approving new laws of an economic nature in the different committees of the Legislature.
“We need to recover technical management. Even the PPK government, if the MEF told Congress that they were increasing spending, they were scared. Now if you do, they censor [al ministro]”, he noted.
Velarde questioned the role that the TC plays in endorsing the decisions of Congress, such as granting it the “power” to generate greater budget spending, “not for the same year, but for the next.”
“It’s a barbarity. I hope the next president has a majority in the Congress or an ally. This is how Toledo and García governed. Today we have a fragmented Legislature, without training. There are no matches. “They ask to withdraw the AFP without analysis,” he snapped.
Rudderless economy
Alfredo Thorne was PPK’s Minister of Economy. The specialist affirms that all the criteria used to generate stimuli for the economy lose meaning when they are orchestrated by a Government that “legislates behind the population’s backs.”
“We all know that spending more on salaries and wages [en el Parlamento] The economy will not be stimulated. All the criteria that were previously used to make decisions are lost, and that is very wrong,” Thorne said.
Also former minister Luis Miguel Castilla accuses a “weakening” of the division of powerswith counterweights that “politicize” fundamental entities such as the TC.
For Castilla, this situation does not respond only to a presidency without a congressional majority, but to the fact of seeking at all costs “permanence in power, which is becoming more and more noticeable.” “Not even when the MEF If you disagree, you can make it official, and you have to accept the political slogan of saying yes to everything,” he says.
Inflation at 2.2% and fewer poor in Peru
At another time, Velarde said he is confident that Peru’s inflation, at the end of 2024, will range between 2% and 2.2%in a downward market trend that should continue until 2025, as long as there are no more external shocks.
The head of the BCRP described as “ridiculous” the projections of some local economists, who pointed out that Peru’s monetary poverty (29% in 2023) will only recover its pre-pandemic levels in 26 years. For Velarde, these estimates “do not make sense” in a country with potential like our country because, he clarified, “poverty is not linear.”
The key
Unlock. BCRP estimates that Peruvian mining will grow 7.8% in 2024, especially due to copper prices and the greater demand for metal for artificial intelligence.
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.
