Peru faces economic challenges: doubts about taxes and rising dollar in August.

August 29 has become a significant date in the economic landscape of Peru, especially due to the events that have shaped the country’s fiscal and monetary direction. In this context, recent sales of companies have provided relief to the fiscal coffers, although doubts persist about the long-term sustainability of these measures. The most recent information suggests that, despite the decline in fiscal revenue in July, unexpected income could reverse this trend, offering a glimmer of hope to fiscal authorities. However, amid this scenario, the Executive's proposal for the Temporary Tax on Net Assets (ITAN) has sparked intense debate. While the aim is to offer tax benefits, the fact that these will be applied until next year has generated discontent among various sectors. This measure has been supported by the Ministry of Economy and Finance (MEF), but some economists and analysts question its effectiveness, arguing that the exemptions may come too late to mitigate the impact of the recession. Meanwhile, the situation with the dollar has also captured the attention of economic analysts. The U.S. currency experienced its largest monthly increase in six years, rising from S/ 3.305 to S/ 3.402 in August, reflecting growing uncertainty in the global market, exacerbated by the ongoing trade war. This increase not only affects the national economy but also highlights Peru's vulnerability to external factors beyond its control. Analysts from various banks have pointed out that upward pressure on the dollar could continue in September, meaning that businesses and consumers should prepare for a potential rise in import costs and, consequently, in the cost of living. In this context, concerns about inflation are rekindled, along with the need for authorities to adopt effective measures to contain it. In terms of economic outlook, the forecast for 2024 seems to be marked by a phenomenon known as "rebound." According to experts, growth next year will be driven by a weak comparative base, given that the first half of 2023 recorded an economic decline. However, projections for private investment are diverse; some analysts expect an improvement, while others view the current environment with skepticism. This uncertain scenario has led many to question the Government's ability to implement economic policies that truly generate a positive impact. Criticism has been swift, and various sectors have demanded a more proactive strategy that not only responds to crises but also stimulates sustainable long-term growth. It is crucial for the Government to establish a clear framework regarding fiscal and monetary policies to gain the trust of investors. Uncertainty and market volatility can deter private investment, thereby affecting job creation and the country’s economic development. Thus, ensuring a favorable environment for businesses is a crucial task. Meanwhile, citizens continue to witness fluctuations in their purchasing power amid a challenging economic context. Families face the dilemma of how to adjust their budgets in light of rising prices and economic uncertainty, forcing them to make difficult decisions in their daily lives. As the year progresses, it will be essential to closely monitor both the execution of Government policies and market reactions. The decisions made in the coming months could define Peru's economic trajectory for a prolonged period, and the responsibility lies with both the authorities and the private sector’s ability to adapt to the new market realities. Collaboration and dialogue among all economic actors will be crucial to facing the challenges ahead.