LIMA, October 14 (EFE).- General government investment in Peru grew by 3.7% from January to September, due to greater implementation of spending by the national and regional governments, the Central Reserve Bank (BCRP) reported.
This investment totaled 27,534 million soles ($7,170 million or 6,815 million euros) in the first nine months of the year, while in the same period of 2022 it reached 26,540 million soles.
In the period referred to, the implementation of national government spending increased by 20.7%, while the implementation of regional government spending increased by 8.2%.
The Central Bank explained that, according to project groups and activities, the increase in spending on gross capital formation matched the reconstruction tasks by 4.5%, especially within the framework of the “government to government” agreement signed with the United Kingdom. And the “remaining” projects and activities amounted to 5.4%.
Referring to last September, the Central Bank indicated that general government nominal investment rose by 5.9% year-on-year, due to greater expenditures accumulated on the national government and, to a lesser extent, on regional governments.
General government investments during that period amounted to 4,217 million soles, while in September 2022 they amounted to 3,983 million soles.
In percentage terms, national government investment increased by 35.5% year-on-year, while regional government spending expanded by 1.2%.
However, BCRP highlighted that local government investments fell by 13.1% year-on-year.
On October 3, Peru’s Minister of Economy and Finance, Alex Contreras, announced that public investment was rebounding in his country, commenting that it had risen in September by 6.9% compared to the same period in 2022.
Contreras highlighted the implementation of the Presidency of the Council of Ministers (PCM) and the Ministries of Energy and Mines (Minem), Defense (Mindef), Transport and Communications (MTC), and Labor and Employment Promotion (MTPE).
However, he admitted that the implementation of local government budgets must be improved, which keeps public investment low during the year.
“It went down a little in September, but it continues to go down, and that worries us because we are already 8 months into administration, and there has already been a learning curve, but the teams are not responding at the local government level.” male.
Contreras said they will continue to focus on providing follow-up and support to the main implementers of the national government, but without neglecting the regional and local governments which are priorities. Evie
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