The future looks promising for Peru because its main trade partners are growing at fast rates.
The Foreign Trade Company of Peru (ComexPerú) warned that an increase in the minimum wage, now amounting to 850 Soles a month, would go against the objective of recovering small and medium enterprises (SMEs), and also reverse the slowdown of the employment growth, said Gestión.
“The costs of all types of companies, especially SMEs, would be increased, which would encourage them to move to informality and put sustained growth at risk,” added ComexPerú. They also believe that this year, Peru should aim for growth levels above its potential.
ComexPerú said to Gestión that the authorities should continue to encourage investment and facilitate administrative processes that today only entail higher costs.
“Peru can’t afford to have stagnant investments in extractive industries, except now that the international scene is quite favorable after several years,” the union said.
“The world is doing well and the International Monetary Fund has foreseen growth of 3.9% in 2018 and 2019, while for Latin America and the Caribbean it is expected a dynamism of 1.9% and 2.6%, respectively,” ComexPerú recalled.
In the Peruvian case, they believe that the future looks promising, especially because its main trading partners, such as China and the United States, would grow at rates of 6.6% and 2.7%, respectively.