The Reactiva Program and its real effects on Peruvian firms

The Reactiva Perú credit guarantee program is part of a broader international effort to mitigate the economic impact of the COVID-19 pandemic by sustaining the corporate payment chain. Research shows the program has had significant macro- and microeconomic effects in Peru. Using national administrative data covering all formal firms, this study evaluates Reactiva’s direct impact on employment, wages, sales, and profits, as well as indirect effects on output, productivity, and investment. The analysis applies a difference-in-differences approach, representing a methodological advance. Results indicate positive impacts across all measured outcomes, particularly among smaller firms and in the sectors most affected by the pandemic—such as commerce, services, and transportation—where small businesses are predominant.