IDB: Uncertainty disappears and investor interest in Peru resumes

RIO DE JANEIRO, BRAZIL – Political uncertainty in Peru is fading, and business and investor interest in the country is returning, according to Inter-American Development Bank (IDB) President Mauricio Claver-Carone.

“In the six months of the new government led by President Pedro Castillo and the commendable work of the Minister of Economy and Finance, Pedro Francke, and the President of the Central Bank (BCR), Julio Velarde, we have seen a renewed interest in Peru by businessmen and investors,” he told Agencia Andina.

Read also: Check out our coverage on Peru

“Some of the uncertainty has already been removed. I want to end the speculation and uncertainty of 2021 and focus on 2022. I am apolitical, it is not my job to interfere in the politics of countries, but the reality is that in Latin America and the Caribbean in general, we have seen that corporations and investments are motivated by political changes, rise and fall,” he said.

He believed that political uncertainty does not benefit the country; on the contrary.

“With this 13% growth in 2021 (according to the MEF) and positive fiscal management, Peru has the chance to show a united front and not just an ideological one,” he said.

“At the end of the day, this is not about ideology; ideology is not something you can eat, what you can eat are the results that are achieved, results are what the citizens want, and that’s what we have to focus on,” he said.

He reiterated that Peru has an excellent opportunity for growth because of this momentum of the last six to seven months and should not let politics hinder it so that it can continue to demonstrate good management, leaving behind the speculation of 2021 and focus as a country on inclusive and sustainable growth in 2022.

“We hope that Peru will achieve much higher growth than the 3% projected by analysts (4.8% of MEF) so that it is inclusive and sustainable and not concentrated, a priority of President Castillo,” he said.

LOAN PORTFOLIO

He said that the loan portfolio with Peru between 2021 and 2022 will amount to about US$2 billion and will focus on education, water and sanitation, rural connectivity, agriculture and livestock, and improving logistics in transport projects. He added that this historic portfolio would hopefully build confidence.

“We can continue to focus on reconstruction and not have to go back to the responses we saw in 2020 and early 2021, but of course, we have to pay attention to pandemic response requirements,” he said.

The goal, he said, is to help Peru manage well, maintain growth acceleration and close the country’s socio-economic gaps.

GROWTH MODEL

Peru, he said, has been a macroeconomic growth model for the last 20 to 30 years, which has led to a significant reduction in poverty.

“In this sense, we must use growth to build confidence by ensuring that these funds are invested in infrastructure,” he said.