Ten years of alert for public investment and economic challenges

Today, July 15, marks 10 years since GESTIÓN warned about the slow progress of public investment and the president's concern over the low execution of the budget allocated to this sector. Back then, the importance of avoiding excessive bureaucratic hurdles that hindered project execution was emphasized. Additionally, it was noted that regions and municipalities should not request more resources if they were not capable of efficiently spending those already assigned to them. In the economic sphere, 5 years ago, on July 15, 2019, it was reported that the economy had grown by 0.63% in May, below market projections of a 1.2% expansion. This deceleration was reflected in the decline of the construction and industry sectors. Despite a slight increase in suitable employment between April and June, 329,700 residents of Lima were actively seeking work. On the other hand, the average income in Lima increased, albeit unevenly, with a mere S/ 5 increase for the 25 to 44 age group. Regarding consumer behavior, a shift in financing preferences was observed. 10 years ago, authorized credit card limits had decreased, while installment loans, especially those for general use, were experiencing growth. This trend was explained by the greater accessibility and lower cost of loans compared to credit card usage. The Central Bank recommended that financial institutions not excessively increase household debt. The economic landscape of those years reflected various challenges and trends in the financial and labor sectors. The low execution of public investment, economic growth deceleration, and changes in consumer financing preferences were relevant issues that required attention and action from the competent authorities. As years pass since the publication of this news, it is important to reflect on how these issues have evolved and what current challenges the economy and society as a whole are facing.