The Executive's reforms through Congress-granted legislative powers will contribute one percentage point to Peru's potential GDP, Peruvian Economy and Finance Minister Alfredo Thorne affirmed.
"Without reforms, Peruvian economy would grow 4% in potential terms. However, with reforms —which you will see through the [legislative] powers— such expansion would reach 5%," he said.
The government official explained half of said percentage point will result from infrastructure boosting reform, whereas the other half will come from the increase in productivity, which is basically the "commitment to reduce informality."
"Within this context, we commit to raising tax revenues by two percentage points of GDP. These would provide us with a margin to carry out structural reforms," Thorne underlined.
"In nominal terms, we started this year with a 3% deficit. This figure will fall to 2.5% in 2017, as set out in the budget bill submitted to Congress. And by 2021, we project deficit at 1% of GDP," he informed.
(END) DHT/MVB
Published: 10/20/2016