Peru | Restoring Confidence: A Solo Endeavor?

Summary

The recovery of confidence in the private sector is an essential element for the proposed reactivation measures to have the desired impact. But it must be a joint effort of the entire Executive.

Key points

• Key points:
• The importance of private sector expectations as a source of economic fluctuations, as well as confidence that policy measures are effective, has long been recognized.
• Business confidence indicators in Peru today are at their lowest. In the short term, this anticipates a slowdown in economic activity and, in the medium term, lower investment, which diminishes the prospects for growth, job creation, and poverty reduction.
• The effort to recover confidence must be undertaken by the entire Executive. Otherwise, it will not improve and the actions that are about to be announced to reactivate the economy will have no real impact.

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