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Velarde Warns Peru Faces Tough Stretch, Urges Support for Next Government

He says stop‑start investment is dragging growth, worsening incomes, housing and services.

Overview

  • Speaking at a tribute by Peru’s construction chamber that honored his two decades leading the central bank, Julio Velarde warned of difficult times and called for broad backing of the incoming government.
  • He said the slowdown reflects weaker private investment and volatile public investment that swung from rapid growth to sharp drops, which cut momentum for jobs and output.
  • He described worsening per‑capita income as “almost a shame” and pointed to high land prices and poor urban planning that make affordable housing hard to build.
  • He urged a stronger, more capable public service and warned that skilled workers are leaving the country in search of better opportunities.
  • He said Peru’s headline indicators remain solid, noting an unusually long spell of low inflation, yet the economy still falls short of the boom years when poverty fell faster.