"Challenges and Opportunities in the Peruvian Economy: An Analysis from August 22"

In the recent history of Peru, August 22 has witnessed significant events in the economic and legislative arenas that reflect both the country's growth potential and the challenges it faces. This analysis focuses on events from previous years, revealing a pattern of challenges and opportunities that continue to shape the national agenda. Peru's economic landscape has been in constant evolution. In 2019, the head of Apoyo Consultoría pointed to the urgent need for a "brainwashing" in the public sector, critical of its tendency to hinder progress on various initiatives. At that time, the public-private partnership sector was seen as a key engine for growth, projecting projects that could reach up to 25 billion dollars. This focus on collaboration between the state and the private sector has been presented as fundamental to achieving sustained growth rates of 5% to 6%. However, business confidence remained a concerning issue. Despite 20% of the country's top 300 companies planning to accelerate their investments, it was evident that, to solidify growth, it was imperative to restore confidence in the business climate. The consultancy emphasized the need to not only observe Gross Domestic Product (GDP) but also the evolution of employment, as key indicators for economic development. Five years later, in 2023, the scenario has changed, although some challenges persist. The legislative context has gained greater relevance, with the approval of nine laws that, according to experts, jeopardize the country's economic stability. Since Dina Boluarte assumed the presidency, 69 regulations have been reviewed, of which 23 were approved without changes. This situation has raised concerns among economists and analysts, who warn about the impact of these decisions on Peru's economic health. Legislative uncertainty adds to an investment environment that already faces complications. Compared to 2019, when a significant boost in housing construction was anticipated, 2023 has shown a different trend. Pre-sale times have lengthened, and financing requirements have limited the progression of housing projects from their initial stages to actual construction. Sales of new units in Metropolitan Lima are estimated to fall from 1,500 to 1,100 monthly, which could affect the real estate market and job generation. The relationship between the public and private sectors becomes an essential issue for the sustainable development of the country. Public-private partnerships are recognized as a viable mechanism to overcome the state’s budgetary limitations, but their implementation faces resistance from a regulatory framework that sometimes seems more focused on bureaucracy than on efficiency. To foster a conducive environment for investment, it is vital that both the government and Congress adopt more favorable positions that prioritize economic growth. The challenge of improving business confidence is not only a matter of policy but also of perception. Businesspeople need to feel that their investments are protected and that there is a clear and stable legal framework. The uncertainty created by laws that even contradict the powers of Parliament generates a climate of distrust that can disincentivize investment in the country. Housing construction is not just an issue of infrastructure; it is also closely related to social well-being. The reduction in housing supply can have a domino effect on the economy, affecting sectors such as employment, material production, and the stability of the real estate market. It is imperative that the government and the institutions involved find solutions that facilitate the transition from project plans to actual construction. Thus, August 22 stands as a milestone in reflecting on Peru's economic future. With lessons from the past and present challenges, the country faces the need to reinvent its growth strategy and strengthen collaboration between the public and private sectors. Only through a proactive approach and legislation that favors investment can a more prosperous future for all Peruvians be guaranteed.