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APOYO Consultoría: The fiscal policy must be multiplied in the short term in order to mitigate the economic impact

Hugo Santa María - Partner and Chief Economist

23/03/2020

Article published in El Comercio.

Tomorrow will be the end of one week of obligatory social isolation decreed by the government with the objective of slowing down the spread of the virus in the country. That’s why the Executive announced several measures in order to mitigate the economic impact in Peru.

“If we want the return to normalcy – which will be hard – to be as quick as possible, we shouldn’t allow Covid-19 to bankrupt households and businesses.”

In this vein, Partner and Chief Economist of Servicio de Asesoría Empresarial (SAE) at Apoyo Consultoría, Hugo Santa María, indicated that until yesterday the fiscal measures introduced by the Executive equate less than 0.5% of the Gross Domestic Product (GDP), which is why it’s necessary for this effort to be multiplied four or five times in the short term, “through a coherent and complete package that combines temporary and targeted increases of current spending and subsidies, transfers of money or assets, rescheduling of tax payments, amongst others”.

Santa María also added that it’s necessary for the measures introduced by the Superintendencia de Banco y Seguros (SBS  – Superintendency of Banking and Insurance) consisting of facilitating debt rescheduling to be complemented by the actions of the Banco Central de Reserva del Perú (BCRP –Central Reserve Bank of Peru) focused on giving financial institutions broader access to liquidity.

SAE in the media

“Para hacer política económica se requiere hacer mucha política a secas”

Hugo Santa María, socio y economista jefe de APOYO Consultoría, ve un “crecimiento chato” para la economía este año, con una actividad económica bastante lenta durante todo el 2021.

“Hay que cuidar la solidez fiscal como oro”

El socio y economista jefe de APOYO Consultoría, Hugo Santa María, explica los riesgos que enfrenta la economía peruana y enfatiza la necesidad de una reforma política.

APOYO Consultoría sobre el PBI: “Ya se recuperó casi toda la oferta, ahora falta la demanda”

Apoyo Consultoría, refirió que desde el lado de la oferta, ya casi todos los sectores productivos se han reactivado. No obstante, el reto ahora es reactivar la demanda.

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