Peru Fin Min: Indicators suggest economy is recovering following April decline

Jul 13, 2020

By Andina 

 

The world economy is facing a severe crisis due to COVID-19, and Peru —after implementing one of the most important economic plans in its history— already witnesses the leading indicators suggesting that the national economy is recovering, following a decline in April.

Thanks to the economic reactivation —which is already in Phase 3— and the launch of Arranca Peru (Get off the Ground, Peru) Program, a rapid economic recovery is expected with expected significant improvements in the third and fourth quarters of the year, the Cabinet member expressed.

As for expectations, there is also a significant improvement in the indicators and macroeconomic outlooks. Some expectations are even already in the optimistic track. 

"The implemented economic plan —which has a positive impact equivalent to 17 points of GDP— aimed to minimize the impacts of COVID-19. To do so, we made use of all possible tools: tax measurespublic spending, as well as other liquidity measures, and the guarantees from the Public Treasury for loans geared towards companies in order to cover working capital," the high-ranking official wrote on Twitter.

As of July 8, the implemented measures amounted to S/126.280 billion (about US$ 36.080 billion, which is equivalent to 16.6% of GDP)," she added.

This is composed of public spending measures (S/19.7 billion, US$5.62 billion); tax measures (S/16.2 billion, US$4.62 billion); and liquidity measures through the release of pension fund accounts, Service Time Compensation (CTS), and public credit guarantee (S/90.3 billion, US$25.8 billion).

According to Minister Alva, COVID-19 has posed one of the greatest challenges for the world —in health and economic terms.

"From Peru, and with the strength that characterizes us, we are giving everything to win this battle," she underlined.

The post about “Peru Fin Min: Indicators suggest economy is recovering following April decline" first appeared on the Andina website.

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