Public debt grew more than 10 points in a decade

The public debt Peruvian grew by more than 10 percentage points in a decade and went from 20% of GDP in 2014 to 32% in 2024, Carlos Prieto, manager of Economic Studies of the Economic Studies of the BCP.

The Peruvian steel and region industry is being affected by China’s subsidies to its manufacturing sector, Tavernelli warned.

“It continues to be one of our main macroeconomic strengths, but we must not lose aside the trend. More than 10 points of increase. If we see the net public debt, which is the difference between public debt and our savings, we see that we have been consuming our savings, so this indicator increases 20 points,” he added.

The expert warned that interest payment has also increased from 1.1% of GDP to 1.7%. This, he said, means lower resources for sectors such as infrastructure, health, education and security. What has decreased are tax revenues from 22% to 19%.

“This analysis of the last 10 years allows us to observe that there has been a deterioration of public finances. We have an increase of just over 40% of public sector remuneration and salaries,” he added.

WORRY

The BCP representative said there is concern about populist measures approved in Congress. For example, he pointed out that the Executive must observe the autograph that approves that retired and unemployed teachers of the magisterial public career receive s/3,300 pension. This initiative was approved last week in Parliament.

“That is a clear example of populism and fiscal irresponsibility, threatening the balance of the pension system itself. In addition, the Congress has no spending initiative, so we hope that the Executive will observe the norm and in any case resort to the Constitutional Court,” he said.

In that sense, he warned that the fiscal impact of such a measure is approximately 5,000 million, a amount that would have to be discounted “from the investment made in infrastructure or other activities.”

Carlos Prieto recalled that in the project of budget next year an increase in wages is mentioned, which could mean a fall in public disbursement in 2026. “It seems that the priorities of the country are still for increased remuneration,” he said and questioned that there is no improvement in security, education, among others.

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