Peru launches economic package amid concerns over slowing growth

Peru launches economic package amid concerns over slowing growth

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LIMA, Sept. 8 (Reuters) – Peru’s finance ministry on Thursday unveiled an economic package it says could help boost the economy in times of global slowdown and falling copper prices, which are vital to the country’s economy.

Finance Minister Kurt Burneo said the measures could boost gross domestic product growth by 0.6% this year and 0.8% in 2023.

The announcement comes just weeks after the Peruvian Ministry of Finance announced economic growth forecasts that surpassed analyst consensus. The ministry expects GDP growth of 3.3% this year, while analysts polled by Refinitiv predict 2.6%.

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The cost of the stimulus package, much of which has yet to be approved by Congress, will total 3 billion soles, Burneo said. The package includes incentives for private investors, including in mining exploration, as well as increased government spending.

Peru is the world’s No. 2 copper producer and falling prices of the red metal hit the tax coffers after record revenues in 2021.

Peruvian President Pedro Castillo came to power last year with a far-left platform that terrified investors and sent the country’s sol currency to record lows.

But since then, he has taken his stance moderately and moderately for the main Treasury Department in an effort to maintain investor confidence.

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