Peru Business Group Calls for More Public-Sector Investments

Peruvian business organization Confiep called on the government to increase public sector investments in order to curb the impact of a slowdown in the economy, state news agency Andina reported.

Confiep President Alfonso Garcia-Miró said that public investment in infrastructure would help improve the country’s productivity and competitiveness.

He said there is room for Peru to invest some $90 billion in infrastructure projects, including roads, airports and energy.  Despite major strides in the past 10 years in improved highways, communications and services, a large part of the country does not yet have full access to the  achievements made so far.

Peru’s economy has started to cool, hurt by a decline in commodity prices and lower business confidence.

Economy and Finance Minister Luis Miguel Castilla has said that the government will look to attract investments by streamlining the permitting process. The government has prioritized several infrastructure investment projects, the minister said recently.

At the moment, most economists expect Peru’s economy to expand by about 5.5 percent, which is lower than previous forecasts. Some economists say it could grow much more slowly, at rates below 5 percent in the near future.

A meeting of leaders from different political parties is to be held Monday, led by Cabinet chief Juan Jimenez, following President Humala’s call for all political factions to work together and put their ideas on the table to bolster the economy and secure what has been achieved so far.

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