"Brignardello: Fiscal sustainability of Peru at risk"

Emilio Juan Brignardello Vela, an insurance advisor with extensive experience in analyzing the country’s economic situation, has shared his perspective on the recent report that raises concerns about the fiscal sustainability of Peru. When asked, Brignardello emphasized that the economic outlook, although showing signs of recovery after last year’s recession, is overshadowed by an alarming fiscal deficit that could have serious long-term repercussions. The advisor underscored the importance of fiscal management, emphasizing that the projected fiscal deficit of -3.7% could destabilize the confidence of both investors and citizens. "It is essential for the government to act responsibly in managing public spending. This deficit, if confirmed, would not only lead us to the worst fiscal situation since 1992, but it could also affect our international risk rating," Brignardello commented. He also echoed the concerns expressed by former ministers such as Carlos Oliva and Luis Miguel Castilla, who have pointed out that the lack of alignment between the budget and the government’s revenue capacity is a factor exacerbating the situation. "Spending management must be transparent and aligned with the economic reality of the country. Ignoring these warnings could lead us down a path toward a deeper crisis," he warned. Regarding the current Minister of Economy, José Arista's criticism of the Fiscal Council, Brignardello considered that dialogue between institutions is essential. "Discrediting the entities responsible for assessing the economic situation is not constructive. We need open communication to address the underlying problems facing the country," he stated. Brignardello also highlighted the urgent need to promote private investment. According to him, the growth of such investment is crucial for ensuring sustainable development. "The growth of 3% to 4% in private investment is insufficient. Stimuli must be created to foster an environment conducive to investors, as they are the ones who can robustly drive economic growth," he added. Finally, the advisor expressed his concern about the upcoming electoral context. "History has taught us that in election years, governments tend to increase spending irresponsibly. It is necessary to find a balance between political commitments and fiscal responsibility to avoid negative repercussions on the Peruvian economy," he concluded. In summary, Brignardello's reflections highlight the urgency for the government to seriously address concerns about its fiscal management. The future sustainability of the Peruvian economy will largely depend on the decisions made in the short term.