MEF: Peruvian economy to start its recovery this month | GDP | National Product | Government of Peru Inflation | economy

The The Peruvian Economy It has been a very difficult year and Economy and Finance Minister Alex Contreras indicated that the recovery will only start to be felt in December this year.

Until now, the Gross Domestic Product (GDP) Peru has been “in the red” for three consecutive quarters and preliminary data from the National Institute of Statistics and Information (INEI) for October are not encouraging.

MEF Chairman opined that good times are coming Christmas campaign This year.

“Looking forward to a good campaign. December will be the beginning of the recovery, but we estimate the most significant recovery in the first quarter of 2024″, he disclosed after the ceremony of the 2023 Annual Research Symposium of the Consortium for Economic and Social Research (CIES).

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Deflation?

At another point, Contreras noted whether or not Peru is experiencing deflation, as consumer price indexes (CPI) in metropolitan Lima and nationally continued to decline in October and November.

“Fundamentally, major price corrections have taken place in the last two months. So, just as inflation is a problem, deflation can sometimes cause some discomfort. But in this environment inflation helps to reach the target quickly”, he mentioned.

He pointed out Inflation is recession This partly reflects the decay of the effect of certain shocks that are temporary, such as certain food and energy prices.

“What we expect is that this inflationary trend will continue to moderate. Let the prices continue steady. In the meantime, we are paying close attention to the implementation of the Unitos project”, he emphasized.

Currently, inflation in metropolitan Lima is at 3.6%, close to the target range (1% to 3%).

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Reducing informality

The Minister assured that there are plans to build as part of the plans to be sent to the Republican Congress this year. Special Economic Zones (SEZ) and simplification of tax regimes.

Contreras explained that one of the main topics covering the government’s agenda in 2024 is the establishment of measures to promote formalism.

Rather than punishing the informal, he noted, incentives should be created for formalization such as access to finance, better infrastructure, greater security and better institutionalization.

“There is a broad government agenda to continue promoting reforms to help recover from the collapse of structural growth over the past decade. It’s a challenge, but we’re on the right track”, he noted.

He also noted that political instability is a major factor of concern for formal institutions. “So, this data should be a warning to everyone.”, he pointed out.

For this reason, the official urged all economic and political actors to promote an environment of stability and consensus, despite differences. “That way, as a government, we will continue to work to take the country forward and create an environment for restoring stability and confidence.” he declared.