Julio Velarde participates in the World Economic Forum in Davos

The president of the Central Reserve Bank of Peru, Julio Velarde Flores, has been participating in the World Economic Forum (WEF for its acronym in English) in the city of Davos, Switzerland, 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 orb

Velarde Flores 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 holding company Brazilian energy Cosan Limited.

In the session, held on Wednesday the 17th, 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.

Velarde Flores highlighted that the good news for the region is that inflation, which scared everyone at some point, is controlled and is falling in the region; Even in some cases, such as Peru, they are close to entering their inflation target ranges. However, he specified that “growth is the problem” since some large economies in the region show some stagnation.

Likewise, he 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. 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 BCR 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.