The latest results reported in the economy of Peru mean that, as said by Adrián Armas, central manager of Economic Studies of the Central Reserve Bank of Peru during his presence at InPerú Huancayo, Peru is no longer the star of Latin America. In fact, according to the latest BCRP report, Peru’s economy has recorded three consecutive negative quarters.
On average, he continued, the economy grew 2.8%, less than half of its expansion rate before, when it grew at a rate of 6%, and now with a lower trend.
“The advantage of looking at countries and regions is that we find patterns that repeat themselves, and this happened in Latin America. For a decade the region has seen little growth,” he said.
What does it take to grow? According to Armas, what is truly effective is not in the short term, it takes time. However, “there is not much talk about regional reforms.”
And along these lines, Peru is not only a country that is not growing, but it is also not the star of the region because of its economic performance.
This, he commented, was due to many factors, including political instability. “There is a serious problem of instability. If you look at Peru, you see that since 2016 there has been a rotation of almost one president per year and that number increases if we talk about ministers or vice minister,” he said.
In addition to corruption, where millions of soles are lost in paralyzed projects, from large projects to small ones, where problems are observed in technical files or expropriations that cannot be solved, the official commented: ” There are many problems in public administration”.
And what happened in the Junín region?
Armas emphasized that the weight of Junín’s GDP is greater than that of Peru in terms of sectors such as agriculture and mining, economic engines, sectors that drag others such as metalworking or manufacturing. However, Armas also showed that when Peru’s economy grew at a rate of 6%, on average, Junín grew by half. This is 3.1%. “What allowed it to regain its relative position was investment in mining, a fundamental issue when the Toromocho project started,” he said.
Likewise, during InPerú Huancayo, he also mentioned that a fundamental issue of working in the sector is infrastructure, which has an advantage due to its proximity to Lima. But despite this, unfortunately, “Junín, with 1,400,000 inhabitants, moved from Lima because of not developing its infrastructure (to improve its connection). “This is a fundamental issue,” he said.