The Inter-American Development Bank (IDB) on Wednesday highlighted the private sector's role in the development of infrastructure in Peru.
"The private sector has had —and currently has— a key role in infrastructure investment, a role we hope it continues to play in other sectors as well," said IDB representative in Peru Viviana Caro.
In this sense, the economist affirmed economic growth is mainly driven by spending and investment.
"The important thing about investment is that it generates capital, which in turn continues to yield value over time," she pointed out.
"This is especially true for domestic investment, since it allows for the mobilization of savings."
Virtuous circle
Caro went on to reiterate the high relevance of investment as evidenced by such cycle, which she described as a virtuous circle.
"If we take a look at investment from 2000 to date, [we see that] the country's total capital has grown as a result of public investment, which has doubled," she stressed.
"And private investment has played an important role," she added.
Lastly, the IDB representative noted investment can also contribute to closing gaps efficiently, thus increasing projects' social and economic impact.
Remarks were made during the 2017 Quo Vadis International Forum, which convenes experts and Peruvian government officials to discuss and present proposals to boost the local economy.
Organized by Lima Chamber of Commerce (CCL), the event features Economy-Finance Minister Alfredo Thorne, as well as analysts from IMF, IDB, CAF, Peru's Central Reserve Bank (BCR), among others.
(END) CNA/JJN/DHT/MVB