INSUBCONTINENT EXCLUSIVE:
In Peru, the economic recovery remains elusive, leading to a continuous decline in private investment.Recent data from the Central Reserve
Bank of Peru (BCRP) shows a 6.2% year-on-year drop in private investment during the third quarter of 2023.This downturn marks the fifth
consecutive quarter of such decline
The BCRP identifies the reduction in non-mining investment as a key factor.This sector has seen a downturn due to stagnant business
outlooks, which have remained largely pessimistic.This negative sentiment in business circles is closely linked to the overall decline in
investment.Additionally, residential investment has lost its previous growth momentum
This loss has further contributed to the overall decline in private investment.When people invest less in housing, it often reflects broader
economic challenges.On the other hand, public investment also experienced a 4.6% fall in the same quarter
This pattern suggests a cautious approach by new administrations.Despite these downturns, public consumption increased by 2.8% compared to
from immediate health concerns to broader economic issues.Private ConsumptionHowever, private consumption slightly decreased by 0.1%
and face higher costs, they tend to spend less
private sectors, consumer confidence, and broader economic conditions.Each element influences the others, creating a challenging economic
