Central Bank of Peru says that public investment is important to the economy

23/09/2016 source “El Comercio”

The President of the Central Reserve Bank (BCR) of Peru, Julio Velarde, said that public investment is important to the Peruvian economy, since it has a multiplier effect of 1,5 times, in an environment where GDP slowed in recent years due the lower productivity.

“Public investment becomes important to the economy. Each Sol of public investment helps the production to increase 1,5 Sol”, he said. The economist predicts that public investment will recover this year and grow 10,3%.

Adding that the calculations of the International Monetary Fund (IMF) coincide with the BCR, Velarde explained that the works carried out over the last 15 years were closer to the needs of the regions, which favoured the creation of employment and production, increasing the capacity of consumption.

The economist said that this year will be given priority to projects in sectors of transport, communications and electricity, stressing that is expected a 4% growth for this year, mainly driven by the primary sector, and an increase of 4,5% in 2017, driven by the recovery in private investment.

As conclusion, Velarde explained that within the long-term prospects there was a recovery of the economy since 1990 and a high growth in the last 15 years.

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