Peru launches economic package amid worries of slowing growth By Reuters

Peru government proposes 9% budget increase for 2023

© Reuters. FILE PHOTO: A view of the Congress building in Lima, Peru, September 30, 2019. REUTERS/Guadalupe Pardo

LIMA (Reuters) – Peru’s finance ministry on Thursday unveiled an economic package it says can help lift the economy at times of a global slowdown and falling prices, which are key to the country’s economy.

Finance Minister Kurt Burneo said the measures could boost gross domestic product growth by 0.6% this year and by 0.8% in 2023.

The announcement comes just weeks after Peru’s finance ministry announced economic growth projections that exceeded analysts consensus. The ministry expects GDP growth of 3.3% this year, while analysts polled by Refinitiv forecasts 2.6%.

The cost of the incentive package, much of which still needs to be approved by Congress, totals 3 billion soles, Burneo said. The package includes incentives for private investors, including in mining exploration, as well as heavier public spending.

Peru is the world’s No. 2 copper producer and falling prices of the red metal are hitting tax coffers after record revenue in 2021.

Peruvian President Pedro Castillo came to office last year with a far-left platform that spooked investors and sent the country’s sol currency to record lows.

But he has since moderated his stance and picked moderates for the key finance ministry in a bid to maintain trust with investors.

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