Optimistic MEF: Hopes Economy Will Grow in 2024 | economy

Before the auditorium of CADE Executive 2023, the President Ministry of Economy and Finance (MEF), Alex Contreras asked businessmen to join the trust of the government.

Thus, he believes the economy will overcome the recessionary cycle and rebound in the first quarter of 2024.

“We have to trust again, it’s time to stop this ridiculous pessimism that is causing delays in the country, trust Peru again, trust this administration that continues to bet on private investment, continue to create better conditions,” he said. .

He added that Business confidence in Peru, in the short term, is pessimistic From the second wave of the epidemic in 2021, this makes traders more cautious.

He declared thus Next week the MEF will begin taking the first steps of the unified plan It aims to revive the economy.

“We are expanding the spectrum of jobs for taxes and services for taxes and, for the rest of the year, we will implement these regulations,” he said.

Reforms. Later, the Julio Velarde, President of the Central Reserve Bank (BCR).He pointed out that the growth of the economy is subject to pending reforms, as is the specific case of the labor market.

He explained that currently the interest rate in the world is still high, which means that the cost of finance, especially for MSEs, is almost unaffordable. “During the epidemic, many ate their capital” He noted that thousands of Peruvian entrepreneurs and small business owners are struggling to pay their debts.

Velarde said Peru needs to grow within its capacity, which currently stands at 2.5%, not enough to reduce poverty.

Inflation and Poverty. As for inflation, Velarde believes it will remain within the BCR’s target range of between 2.9% and 3% in April 2024.

However, He cautioned that it depends on how El Niño plays out This will not affect the supply of mainly groceries as prices will rise.

Julio Velarde pointed out that currently, 11% of the country’s poor lack S/11 to stop being poor.

In that sense, he explained that poverty increased after the Coivd 19 pandemic, mainly in cities like Lima.