The president of the Central Reserve Bank of Peru, highlighted during his participation in the World Economic Forum (WEF for its acronym in English) that regional inflation, which scared all economic agents at some point, is controlled and declining. He highlighted that even in countries like Peru, inflation is already close to entering its target range.

However, he specified that the “growth is the problem” since some large economies in the region show some stagnation.

In Peru, the situation of political instability has taken its toll. Maybe not in stability (economic), that we have been able to protect it, but it is growing. We have had, since 2016, a succession of governments within the constitutional rules. In that year, two right-wing candidates went to the second round; one more liberal who won the presidency, and another more conservative. When they are often of the same ideological bias, the confrontations are greater”Velarde noted.

The WEF has been taking place in the city of Davos, Switzerland, and is a meeting that brings together world political leaders, as well as central bank governors, finance ministers, academics, directors of the largest companies in the world and investors. from all over the world.

In the session this Wednesday, January 17, Velarde was part of the panel on “Economic realism in Latin America”, together with the Minister of Foreign Affairs of Argentina, Diana Mondino, Marina del Pilar Ávila, governor of Baja California (Mexico) and Luis Henrique Guimarães, director of the Brazilian energy holding company Cosan Limited.

In this session, the macroeconomic challenges of the region were analyzed and how to reconcile them with internal priorities and sustainable development. In addition, the financial and investment needs of the countries and their impact on fiscal pressures were discussed.

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In addition to showing his reflection on inflation and growth, Velarde raised the need to implement reforms in public management in the countries of the region, given that many of them have a serious problem of governance and quality in public services.

I do not defend the Ecuadorian model, I do not sympathize with it, but probably (in Peru) there is a need for a change in the fundamental rules“, he claimed

He pointed out that, in the seventies, the weight of Latin America’s GDP was three times that of Asia and that today it is only a third.

Previously, the president of the Central Bank participated in the lunch on financial health as a key to empowerment and sustainable development, co-organized by Queen Máxima of the Netherlands, in her capacity as advisor to the Global Agenda for the Initiative on the Future of the Global Financial System of the World Economic Forum.

The 2024 annual meeting of the World Economic Forum has been taking place from January 16 to 19. This year, more than 60 heads of state will attend, as well as business executives from Microsoft, OpenAI, JPMorgan Chase, Bank of America, BlackRock, among others.

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