In the second quarter, the private investment in Peru fell 0.2%, according to the Central Reserve Bank (BCR). ScotiabankThis negative result is “disappointing” because although a low result was expected, it was not expected to be in the red.
Look: New holidays affect trade and manufacturing
“That the private investment The fact that the decline in demand has been negative is quite discouraging, even taking into account that the decline has been concentrated in the residential segment, while the mining and non-mining sectors (excluding residential) have shown signs of recovery,” he said.
In this regard, he noted that in the second quarter the Peru is experiencing a “typical Keynesian fiscal stimulus situation, in which public spending drives growth”, but which has led to the fiscal deficit reaching 4% of the Gross Domestic Product (GDP).
The bank said that the multiplier effect of this system on private demand should be tested, as there are no clear signs that it has an impact on private investment.
“One of the long-standing concerns about the Keynesian proposal has been that it pays little attention to the political environment in which it is developed, and that, of course, is the crux of the matter for private investment in Peru,” Scotiabank said.
Peru21 ePaper, enter here and try it for free.
RECOMMENDED VIDEO
