Political crisis in Peru: protests begin to cause millions in losses to its economy

The six weeks of protests in Peru are beginning to take their toll on the economy.

in most of the country's economic activities due to the cuts and stoppages imposed by the protesters,

of the serious political and social crisis in the Andean nation yet in sight.

When the economic actors thought that the departure of the leftist Pedro Castillo from the presidency, due to a failed coup attempt, would bring improvements to the country's macroeconomic expectations, the protests intensified and

.

The demonstrations rejecting Boluarte began in the south of the country as soon as he took office, on December 7, and spread to almost the entire territory, after the first deaths from police repression occurred, which

.

The President of Peru, Dina Boluarte.

Photo: EFE

After six weeks of protests, with a week of truce for Christmas, the economic losses have risen to 2,150 million soles (about 554 million dollars), as confirmed this week by the Minister of Economy, Alex Contreras.

the south paralyzed

The most affected regions are the southern Cuzco, Madre de Dios and Puno, which

and are already suffering from fuel shortages and high food prices.

Contreras estimated that if a quick dialogue between the parties is not achieved and the conflict continues,

, but if there is a reactivation as a result of a political consensus, the rise in GDP would be of at least 3%.

The roadblocks begin to claim millions in losses to the Peruvian economy.

photo: AP

However, the inflation analyzed in January will very possibly be around 9% precisely because of the protests, the minister announced, although he hoped it would be a temporary increase.

One million people out of work

A study by the Lima Chamber of Commerce warned this week that one million jobs, equivalent to 27.8% of formal employment in Peru,

.

The strikes and roadblocks

(52.6%), the agricultural sector (51%), manufacturing (32.3%) and construction (31%), among others.

The chamber pointed out that the losses are also recorded in public investment that every day is equivalent to 71 million soles (18 million dollars).

blow to tourism

But if there is an activity that is currently in recession, it is tourism, since the focus of the protest demonstrations is in the regions that have the greatest attractions for receptive tourism, such as

in the south of the Andes , as well as the Amazonian Madre de Dios. .

The protests in Peru have already been going on for six weeks, and 60 deaths have been claimed.

Photo: AP

No tourists in Machu Picchu

Cuzco is home to the Inca citadel of Machu Picchu which, due to protests, has had to stop operations at its airport and the trains that lead to that archaeological center several times.

Puno is the highland region that has the highest navigable lake in the world, Titicaca, but

and the rest of the country is blocked.

Likewise, Madre de Dios has some of the most attractive national parks in the tropical jungle, bordering Brazil and Bolivia, but it was the first region to be left without gas and fuel supplies due to the blockades.

The president of the Peruvian Association of Travel and Tourism Agencies (Apavit), Ricardo Acosta, explained to the EFE agency that the current situation is that "

, there are many people who unfortunately lost their jobs and the shock is very hard."

Peru used to receive 4.6 million tourists before the pandemic

, but this year the expectation

visitors, Acosta said, because "the receptive tourism reservations that we had, I calculate, until May have already been cancelled. ".

Police guard the entrance to the train station that takes people to the ruins of Machu Picchu.

Photo: AFP

The representative added that this crisis "unfortunately not only affects the tourism production chain, but the country's production chain in general. The situation is complicated, I hope the situation will be reversed."

Measures to resume public works

Faced with the paralysis, which generates uncertainty in the economy, the government announced the

(force) program to resume public works delayed by the social upheaval and financing for micro-enterprises that make up most of the business map in Peru.

However, the possibility that the Executive branch can carry out this program in the transition period, as Boluarte has defined it, clashes with

and be able to govern until early elections in a year or less. .

EFE Agency

look too

Evo Morales and his link to the protests in Peru: "If I were, I would be received by the people as an acclamation"

Crisis in Peru: Boluarte said that if Congress does not advance elections, it will go for a constitutional reform