Peru’s New Economic Plan for Economic recovery
2022.12.29 15:26
Peru’s New Economic Plan for Economic recovery
Budrigannews.com – On Thursday, Peru’s finance minister made an announcement about a $1.55 billion plan to get the economy back on track after weeks of protests after former President Pedro Castillo was ousted.
According to Alex Contreras, the package, which will cost 5.9 billion soles and be paid for with extra tax revenue and money left over from the budget for 2022, will go to the areas that are most affected by the unrest and roadblocks.
He stated that it will contribute to bringing economic growth to 3% in the following quarter and create 130,000 jobs over the course of the next year.
According to Contreras, the measures that will be implemented over the next six months include investing in mining and agriculture and expanding welfare provisions like pensions, soup kitchens, and access to in-home services.
During the protests, which have also hampered trade, at least 22 people have died. After Castillo was removed from office and arrested while attempting to illegally dissolve Congress, they came to a head.
Dina Boluarte, his former vice president, took his place and declared a state of emergency, restricting freedoms like the right to gather and giving special powers to the security forces.
According to Contreras, who was appointed by Boluarte, the protests by Castillo supporters and those who were dissatisfied with her government had resulted in the loss of approximately 100 million soles per day and damage to infrastructure.
A ministry presentation demonstrated that total losses totaled 1 billion soles, or 1% of Peru’s December GDP.
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Peru ranks first worldwide. 2 producer, despite the fact that local communities had already staged roadblockades and protests against the industry prior to the political upheaval brought about by Castillo’s departure.
According to Contreras, the Andean nation will maintain its 2023 growth estimate of 3.1% to 3.9% with the plan.
