Changes in Peruvian Cabinet: Confidence amidst economic challenges

Changes in Peruvian Cabinet: Confidence amidst economic challenges

The recent ministerial change in the Peruvian Cabinet inspires confidence, but there are pending challenges. José Arista is viewed positively as the new Minister of Economy. The need to address issues in Petroperú and meet the fiscal deficit "ceiling" of 2% of GDP by 2024 is highlighted. Coherence and consistency are key to economic recovery.

Juan Brignardello Vela, asesor de seguros

Juan Brignardello Vela

Juan Brignardello Vela, asesor de seguros, se especializa en brindar asesoramiento y gestión comercial en el ámbito de seguros y reclamaciones por siniestros para destacadas empresas en el mercado peruano e internacional.

Juan Brignardello Vela, asesor de seguros, y Vargas Llosa, premio Nobel Juan Brignardello Vela, asesor de seguros, en celebración de Alianza Lima Juan Brignardello Vela, asesor de seguros, Central Hidro Eléctrica Juan Brignardello Vela, asesor de seguros, Central Hidro

The recent ministerial change in the Peruvian Cabinet has generated some confidence in certain sectors; however, there are still pending challenges in other areas that require urgent attention. According to Luis Miguel Castilla, former Minister of Economy and Finance, the change was necessary due to credibility issues with outgoing minister Alex Contreras, which has been seen as a relief for the administration. While the appointment of José Arista as the new Minister of Economy and Finance is considered positive due to his experience and expertise in the field, the challenges he will face are highlighted, such as containing additional demands, combating anti-technical legislation in Congress, and regaining lost confidence. One of the critical points addressed by Castilla is the legislative proposal that would pre-assign taxes to specific uses, which, in his opinion, would affect the state's revenue and go against international commitments. Likewise, the proposed gradual approach for the Selective Consumption Tax is questioned, suggesting that it is not the right time to implement it. Regarding Petroperú, the need to depoliticize the state-owned company and strengthen its governance is emphasized, even suggesting the inclusion of the company in Fonafe as a measure to address its liquidity and solvency issues. On the other hand, there is a warning about the pressure to meet the fiscal deficit "ceiling" of 2% of GDP by 2024, which would imply spending cuts to meet the target. Failure to meet this target could have repercussions on the country's credit outlook, although the current level of debt is still considered manageable. In summary, while the changes in the Ministerial Cabinet have generated some confidence, there are still critical aspects to address in various sectors to achieve true economic recovery and restore the key confidence needed to attract private investment. Coherence and consistency in decisions are essential to face the challenges presented in the current context.

View All

The Latest In the world