Finance Minister Kurt Burneo is winning high marks from Peru’s business sector for his recently announced plan to revitalize the economy as well as his outreach efforts to leaders of the agrarian sector.
(Bloomberg) — Finance Minister Kurt Burneo is winning high marks from Peru’s business sector for his recently announced plan to revitalize the economy as well as his outreach efforts to leaders of the agrarian sector.
This month, Burneo has set up a working group with the main unions of the agricultural industry and unveiled a 3 billion-sol ($773 million) economic plan. He’s sought coordination between monetary and fiscal policies aiming for 3.3% growth this year.
Read more: Peru’s President Names Kurt Burneo as New Finance Minister
Since taking up office last month, 61-year-old economist and government veteran has focused on kick starting growth and lowering political tension in Peru as he projects a sense of order that’s often been lacking in President Pedro Castillo’s government.
“We have seen it and we have committed ourselves to support the plan,” Gabriel Amaro, director of the Association of Agricultural Producers Guilds said in a phone interview. “Those are two very important signals to the business sector in the sense of economic growth, improving competitiveness and generating trust.”
The country’s farmers and agricultural industry distrusted the Castillo administration, alienated and angered by proposals such as a law limiting outsourcing, a plan to limit the possession of land and the recent project to create a state fertilizer plant, Amaro said.
Read more: A New Minister Is Appointed Every Six Days in Castillo’s Peru
The political turmoil of the Castillo administration — the Agriculture Ministry’s had six ministers in one year — was another cause of concern, snarling communication and undercutting policy continuity, according to Amaro.
Long known for its metals and energy exports, Peru has become a regional farming powerhouse, making good government-business relations all the more important for this key sector of the economy.
Worldwide, Peru is the largest exporter of asparagus and blueberries, the second-biggest exporter of avocados and the third-biggest exporter of mangoes. Just last year, the country became the largest global exporter of fresh grapes, surpassing Chile and China.
“The message from the economy minister has been very clear, that the only way to get out of the crisis is to work with the private sector and Burneo has to regain confidence with concrete actions,” Amaro said.
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