The Director of Western Hemisphere Department of the International Monetary Fund (IMF), Alejandro Werner, said in a press conference that Peru has adapted its economy in an orderly and responsible way to the environment of lower commodity prices on the international market way, allowing the country to register some positive results.
According to the study “Latin America and the Caribbean in 2016: adjusting to a harsh reality” from IMF, Peru will lead this year's economic growth among the countries of the Pacific Alliance (AP) integrated regional bloc with Chile, Colombia and Mexico.
In turn, the Minister of Economic Affairs of Peru, Alonso Segura, stressed that the figures released by the IMF show that "the process of acceleration of growth is consolidated and this trend will continue in the coming months". He explained that this improvement was achieved because the government took steps, which could generate every month increased production.
Watch the full press conference here: Latin America and the Caribbean in 2016: Adjusting to a Harsher Reality
The Peruvian National Institute of Statistics and Information - INEI, reported an inflation rate of 4.4% for 2015, a figure above the maximum goal level of annual inflation set at 3% by the Central Bank.
According to the INEI, the main responsible for this result were the higher prices of electricity and water. Other items that also contributed were an increase in the sector of food and beverages due to adverse weather conditions production. Likewise, the health sector also saw an increase in prices in some medications such as analgesics, antihistamines, medical services and costs of hospitalization.
The Peruvian government approved today the Rules and Regulations for the implementation of the Framework for promoting private investment through Public Private Partnership (PPP) projects. This initiative, also known as Infrastructure for taxes (Obras por Impuestos), aims to foster private investment by facilitating the development of public infrastructure; public services and services related to these; applied research projects and / or technological innovation through the PPP mode.
According to the Rules and Regulations, the ministries within the respective Investment Committee will act as a one stop shop to replace the plurality of actors with which Proinversion had to interact in the process of structuring projects. This new process will improve the management and coordination within the Government.
The Rules and Regulations approved are expected to boost projects under the Infrastructure for Taxes program by facilitating the implementation of projects between the public and private sector, Since its conception in 2008, 181 projects have been financed for a total sum of 1.784 million soles under this scheme, helping to close the infrastructure gap in a decentralized manner. You can read the Rules and Regulations following this link (in Spanish only)
The Minister of Economy, Alonso Segura, said in a news conference that despite the economic slowdown in Latin America, the Peruvian economy is recovering moderately and will reach a 2.8% growth rate this year and 3.5% in 2016.
Minister Segura explained that "for the last years there has been a large external shock, which was accentuated in the last 18 months, with dramatic falls in commodity prices, especially metals. (Despite this) The Peruvian economy has not stopped growing one month. "
This economic recovery is the result of the different policies taken since the beginning of 2014 related to expenses, taxes, streamlining administrative processes, among others, fostering domestic consumption and investments. In this period, the government issued 33 legislative decrees to facilitate and promote private investment in public private partnerships (PPP), and to expand the scope of the Infrastructure for tax program.
The Peruvian Government believes that in the coming months the economy will keep growing supported by mining projects and infrastructure projects that will start to operate soon.
Source: El Peruano.
Through its Business Barometer , Deloitte Peru revealed that 60.6 % of entrepreneurs expect an improvement for their companies during 2016, 30.3 % expect no change , while only 9.1 % think that it will worsen.
Asked about the level of production in 2015, 41.9 % of participants said that it has not change over the previous year, 35.5 % affirmed that I has increase, whilst 22.6 % considered that it has actually declined. As for the near future, the results are more positive. Half of the respondents see an increase in their production levels within twelve months whereas 40.6 % said that they expect no change and 9.4 % believe that it will decrease.