The president of Central Reserve Bank of Peru (BCR), Julio Velardewarned that the FEl Niño phenomenon It will be the main risk for the Peruvian economy in the short term, despite the fact that the country maintains favorable economic indicators. The statements were made during the ceremony in which he received the Order of Merit Grand Crosshighest distinction awarded by the Metropolitan Municipality of Lima.
During his speech, Velarde pointed out that the impact of weather event It has already begun to be reflected in official figures and it was considered that its effects could intensify in the coming months.
“The outlook is very good, but there is a strong problem that is going to hit us, which is El Niño. We have to be aware of that. Perhaps the figures that we are going to see in the coming months are not so good, and they derive from a natural phenomenon that we are already seeing”he stated.
The head of the BCR maintained that the Peruvian economy maintains solid fundamentals and highlighted that the international context continues to favor the country due to high metal prices.
“We are lucky to have exceptional export prices, the highest in 75 years. The trade balance was positive. If you look at all the short-term indicators, they look very good.”he indicated.
As part of that balance, he mentioned that the collection of General Sales Tax (IGV) registers double-digit growth rates, while imports of capital goods increase around 27% and formal private employment grows 5%.
Velarde also referred to the growth of Gross Domestic Product (GDP) in May, which reached 1.8%, and explained that this result responded mainly to the impact of the El Niño Phenomenon on primary activities.
“Today the GDP for May was 1.8%, not because the commerce, construction or non-primary industry sectors are bad; the non-primary industry is still good, but because El Niño is already hitting us. Fishing fell 74%”he stated.
He added that the agricultural sector is also beginning to show effects derived from the climate phenomenon and considered that the situation could worsen in the coming months.
During the ceremony, Julio Velarde thanked the recognition granted by the Municipality of Lima and pointed out that the distinction corresponds to the work carried out by the Central Bank team.
“It is a great satisfaction. I appreciate the presence of the president-elect; it is an honor. It is an award that is not deserved by me, but by the entire Central Bank team.”he expressed.
Likewise, he highlighted that the main work of the entity has been to preserve price stability in the country.
“The BCR’s only task is price stability. We have the lowest inflation in Latin America in this century and the lowest inflation period in 150 years. “This has helped the country not to do so badly, despite the political instability.”he pointed out.
At the end of his speech, Velarde wished success to the government of the president-elect, Keiko Fujimori.
“I wish the president, for the good of the country, the greatest success and I am sure that it will be achieved”he concluded.
Keiko Fujimori He believed that it is a fair tribute to someone who is an example of professionalism and loyalty to Peru, whose work in his 20 years of management has contributed to consolidating an institution that is a reference inside and outside the country, and that has also generated confidence for investments and protected the savings of millions of families.
The commune of Lima grants this recognition to distinguished personalities whose significant career has contributed to the development of the city. Among the winners are Mario Vargas Llosa, Nobel Prize in Literature.
