Peru allocates US$1.1 billion for coastal El Niño preparedness measures

According to Economy Minister Alex Contreras, Peru’s government has allocated approximately 4,000 million soles (US$1.1 billion) in preparation for the anticipated coastal El Niño phenomenon expected later this year, possibly increasing the budget to 5,000 million soles.

A previous occurrence of El Niño in May caused a 1.4% drop in Peru’s GDP, and there remains uncertainty about the magnitude of the upcoming climatic event.

Contreras acknowledged that preventative works had not been carried out for four years to face El Niño structurally.

Now, preparations are needed to clear rivers to avoid floods that could damage infrastructure, necessitating future rebuilding.

Contreras emphasized readiness for the worst-case scenario to protect the nation’s population and infrastructure.

The first El Niño event of 2023 has led analysts to speak of a recession in the Peruvian economy, though Contreras refers to it as a “slowdown.”

The government aims to return to a 3% growth rate and then work towards 4%.