The trade sector and services are linked to the primary and secondary production of the Peruvian economy and have become the engine of growth in our country, however, the social crisis we are experiencing could change this trend, said Juan Morales Romero, a teacher of the Economics career of the Private University of the North (UPN).
For the specialist, the most important sector that contributes to the dynamism of the economy is commerce and services, because it generates employment, contributing to the reduction of poverty and a sustainable growth of internal demand.
Other sectors such as fishing, mining, hydrocarbons, and primary manufacturing will also experience slight growth. Mining will experience a conservative increase due to the evolution of the economy of Peru’s most demanding trading partners for metals, mainly the United States and China.
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Meanwhile, the dynamics of the construction sector will be negative due to the weakening of domestic demand. According to studies by the Peruvian Chamber of Construction (CAPECO), the drop in this item is due to the social crisis in the country.
In order to boost the Peruvian economy, the UPN professor considers it necessary to apply expansive fiscal policies that stimulate domestic demand and boost private spending. For example, the MEF recommends a decrease in the Income Tax and IGV rates in order to increase family income to stimulate private consumption.
The economic growth of Peru, like other Latin American countries, has as a common factor a slowdown that will be restricted by factors of uncertainty. We must add the persistence of inflation that retracts the development of advanced and emerging economies.
