The recognition by the International Monetary Fund (IMF) of Peru's sound economic fundamentals will enable it to attract new investments for infrastructure development in the country, ESAN University Economics Professor Bill Gee indicated on Wednesday.
"The fact that the IMF highlights this Peruvian economy's strength is crucial for attracting investments," he told Andina news agency.
Gee explained that capitalists from all over the world are attentive to the reports by the multilateral entity to make decisions about upcoming investments.
"The IMF report in these terms will enable (Peru) to attract new foreign investments," the ESAN professor said.
Key reforms
The multilateral entity also highlighted Peru's institutional framework, sound economic fundamentals, and consistency in adopting essential macroeconomic reforms despite social tensions.
In this regard, Professor Gee said the Peruvian monetary policy currently has an expansionary nature, meaning it seeks to increase output while keeping inflation stable.
"Despite non-compliance with the fiscal rule, we continue to maintain sound macroeconomic fundamentals," the economist stated.
Expanding economy
"Gross domestic product growth this year could be higher than the IMF estimate," he expressed.
"It could even be higher, but this will depend on the course of mining projects, as well as on the dynamics of the fishing and agriculture sectors that might encourage greater recovery of the productive activity," he said.