LIMA, Feb 28 (Reuters) – The Peruvian government on Tuesday announced the launch of more than 30 public-private projects worth nearly $9 billion in hopes of reviving an economy hit by violent anti-government protests .
The projects, which include road infrastructure, energy and sewage, are scheduled to start between this year and 2024, the head of the state investment promotion agency, Jose Salardi, said at an event with investors.
“The key is to regain trust,” Salardi said, adding the government is simplifying processes, standardizing contracts and coordinating with the private sector.
Anti-government protests have swept the country since former President Pedro Castillo was ousted on December 7, with clashes between protesters and security forces leaving dozens dead.
According to data from the Ministry of Economy, private investments in Peru fell by 0.5% last year, while in 2021 they recorded a growth of 37.4%.
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At the same conference with investors, Economy Secretary Alex Contreras said the economy of the world’s second-largest copper producer was hit by protests in December and January, but early economic indicators showed a recovery in February.
“The goal is for private investment to grow by 3% this year,” Contreras said at the conference.
“The need for reactivation is urgent… and it is not easy for an economy to recover from an (attempted) coup,” he added.
Peru’s economic growth was 2.68% at the end of 2022, a sharp decline from the 13.61% increase in the previous year.
The International Monetary Fund (IMF) recommended Peru in early February to implement “targeted, temporary” fiscal stimulus amid the slump in economic activity.
After Castillo’s fall, protests erupted in Peru, with demonstrators demanding the resignation of President Dina Boluarte, the closure of Congress, a new constitution and early elections.
Reporting by Marco Aquino; writing from Valentine Hilaire; Edited by Sandra Painter
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