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Economic Recovery in Peru: Experts Expect 9% Growth in 2021

Despite political instability and the ongoing pandemic, Peru’s economy is showing signs of recovery, with experts predicting a growth rate of 9% for 2021.

Productive Activity Rebound

According to data released by ECLAC (2020), Peru’s productive activity has been recovering since November and December 2020. This rebound effect, or statistical drag, could offset the previous fall in GDP, making Peru one of the countries with the highest economic growth in the region.

Tax Breaks for Struggling Businesses

To support businesses affected by the pandemic, the Peruvian government has introduced a range of tax breaks. These measures include:

  • Reduced taxes on imports
  • Lower corporate income tax rates
  • Exemptions from certain social security contributions

“These tax breaks will help struggling businesses to recover and create jobs,” said economist Ana Werner. “It’s essential that we support our entrepreneurs during this challenging time.”

Loans for Small and Medium-Sized Enterprises

To further support small and medium-sized enterprises (SMEs), the government has launched a loan program specifically designed for these businesses.

  • The program, managed by the Ministry of Production, offers loans with favorable interest rates and repayment terms.
  • This will help SMEs to access financing and invest in their operations, ultimately contributing to economic growth.

Conclusion

Peru’s economic recovery is expected to continue in 2021, driven by a combination of government policies and external factors. As the country navigates this challenging period, it’s essential that we prioritize support for struggling businesses and small and medium-sized enterprises.

By providing tax breaks and access to financing, the Peruvian government can help these businesses to recover and create jobs, ultimately driving economic growth and development.

References:

  • ECLAC (2020) Latin America and the Caribbean: Growth projections for 2020 and 2021
  • Oxford Business Group, Peru maintains stable economic growth, unlike other countries in the region
  • International Monetary Fund, Country Report No.20/3, January
  • Transparency International, Corruption Perceptions Index
  • Inei (2020) Informe técnico, June