Recent structural reforms to improve public investment and Public-Private Partnerships (PPPs) frameworks will contribute to closing infrastructure gaps in Peru, the International Monetary Fund (IMF) projected on Wednesday.
In a release, IMF Executive Directors praised Peruvian authorities for their "steadfast implementation of sound macroeconomic policies and reforms."
This, they affirmed, has translated into high growth and significant improvement in social indicators over the past two decades.
"Continued sound macroeconomic management and strong structural reforms are key to sustaining growth and enabling Peru to reach its goal of high income status in the long run," the IMF's Executive Board highlighted.
Directors also emphasized the need for stronger implementation of anti-corruption, as well as anti-money laundering and combating the financing of terrorism (
AML/CFT) measures.
Monetary policy
IMF Directors also welcomed Peru's accommodative monetary policy stance.
In this respect, they encouraged authorities to continue to make decisions based on data and to monitor
inflation expectations closely.
They also welcomed the increased exchange rate flexibility, and recommended that future interventions be limited to cases of disorderly market conditions.
Stable financial sector
The organization noted that —although Peru's financial sector remains stable— the country ought to remain focused on reducing
dollarization to further mitigate currency mismatches and balance sheet vulnerabilities.
In this sense, IMF encouraged "further action to formalize the financial stability council and to broaden the financial supervisory perimeter."
Lastly, IMF stressed financial stability should remain a priority, but without neglecting financial deepening and inclusion.
The aforementioned views followed a Board discussion based on the findings of an IMF staff team visit to Peru.
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