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Roundup: Peru's new president propels economy forward in 2016

Xinhua, December 24, 2016 Adjust font size:

Peru's new President Pedro Pablo Kuczynski has propelled the economy forward in 2016 with restructuring measures such as conducting tax reforms and formalizing informal businesses.

Economic forecasts say Peru's gross domestic product (GDP) will grow by more than 4 percent in 2016, higher than 3.26 percent in 2015 and 2.35 percent in 2014.

Julio Velarde, president of Peru's Central Reserve Bank, recently confirmed the projection, saying the national economy is on track to outperform other regional countries this year.

Restructuring measures promoted by Kuczynski since he took office on July 28 have had a positive impact on economic sectors, Velarde said.

Kuczynski's solid experience in business and finance, including working as chief economist for the International Finance Corporation, a member of the World Bank Group, has won confidence from the industrial and financial sectors in the country.

At an annual meeting of corporate executives in early December, some 89 percent of the attendees approved of Kuczynski's performance so far, and of such measures as making it easier to open a company, implementing tax reforms and providing incentives to formalize informal businesses.

"We want a buoyant market economy with social justice. Period. That's what we want," Kuczynski said when summing up his government's objectives.

In other words, the government's goal is to revitalize the economy while reducing poverty.

Nearly 26 percent of the Peruvian population live in poverty, according to the economy and finance ministry.

Formalizing the informal or underground economy is set to boost tax collection and help pay for governmental social welfare programs.

Kuczynski's clear vision has been the key to his success, said Martin Perez, president of the National Confederation of Financial Institutions.

Peru expects to end the year with a trade surplus of 667 million U.S. dollars, following two years of trade deficits.

One of Kuczynski's first major decisions as president was to visit China to promote trade exchanges between the two countries and boost Chinese investment in mining, energy and other sectors in Peru.

As the president's economic measures take hold and productivity increases, Peru hopes to see exports worth about 40.2 billion dollars in 2017 and 41.9 billion dollars in 2018. Endi