Why doesn't Peru grow at rates of 6.5% annually?

Despite the pre-election campaign, the peruvian economy It will grow this year around 3.4%, and in 2026 by 3.2%, according to BCP projections. These estimates are mainly linked to a favorable international context due to the good prices of metals.

Executive approved rule that will benefit vulnerable population.

The manager of Economic Studies of the financial entity, Carlos Prieto, indicated that it has been a surprise that the price of silver doubled, while that of oil registered a decline. “Despite the uncertain and changing global context, the trade war system, geopolitical issues, the international environment is very favorable for Peru,” he added.

However, the BCP representative considered that Peru could grow at a rate of 6.5% with the international panorama that currently exists; however, he pointed out that there are factors that prevent said progress from being achieved. “There is a huge lost opportunity cost,” he highlighted.

These factors, as he explained, are linked to the deterioration of institutions. Part of that is linked to the eight approved withdrawals from the AFP, discussions about minimum pensions, and the waste of resources in Petroperú that would total around US$10 billion.

“(Growing 6.5%) would allow us to reduce poverty more quickly and expand the middle class, which is what we would like. In the projection horizon, the macroeconomic instability anchors remain, but the big question is whether we are going to be able to reverse the deep institutional deterioration,” he said.

Likewise, he questioned that populism does not allow us to reduce the fiscal deficit, which is why he pointed out that measures are needed that allow more savings and that aim for a surplus. “Peru should be saving because just as there are fat cows, there are skinny cows,” he said.

For this reason, he recommended that it is necessary to contain the institutional deterioration and to attack the source that is linked to populist laws. In addition, he considered that it is necessary to prioritize urgent issues such as citizen insecurity that hits the entire country.

Receive your Perú21 by email or WhatsApp. Subscribe to our enriched digital newspaper. Take advantage of the discounts here.