President Alan Garcia

What results will have the anti-crisis plan in Peru? Buenos Aires, Argentina on January 30, 2009 in Peru just approve start-up launched the first stage of the economic stimulus plan announced by President Alan Garcia towards the end of the month of December 2008. The first stage of the anti-crisis plan involves a cost of 4,500 million soles (about US $1,450 million). The anti-crisis plan starts with a package of 16 measures focused on the promotion of productive activity, social protection and continuity of infrastructure investments. Measures to apply in the first tranche of the anti-crisis plan include a reduction of 10% in the prices of diesel and petrol; investments by 1.9 billion dollars in infrastructure, and more than 700 million soles for works of social order. The social issue is a topic highly sensitive in Peru, considering the high level of poverty prevailing in the country (40% of the population is below the poverty line).

The implementation of the anti-crisis plan appears at a good moment when the crisis had begun to affect tax revenues and external accounts, threatening to cause a significant negative impact on economic growth. The anti-crisis plan aims to keep the rate of economic growth above 5%. Despite the impact of the international crisis, the Peruvian economy is one of the Latin American economies with better growth prospects for 2009. Since the GOP is projected to grow from the product in the order of 6%, projection (and target) that may be closer reach with the influence positive plan anti-crisis which has just get underway. That the Peruvian economy seeks to achieve a rate of growth of more than 5% have direct linkage with the need to improve its social indicators. Therefore, the concern of the Government of Alan Garcia goes more by the impact of the crisis on low-income segments, than its specific impact on the growth rate.