Andina

Fitch: Peru grows faster than any nation with similar credit rating

Lima

Lima's financil hub. Photo: ANDINA/Archive

17:52 | Lima, Feb. 27.

Peru's economy is growing at fastest pace accompanied by low inflation levels than any other country with BBB+ credit rating, thus benefiting a real expansion of the Gross Domestic Product (GDP), according to rating agency Fitch.
Director in Fitch Ratings' Latin America Sovereign Group, Erich Arispe, stated Peru has been one of best performers amongst the macroeconomic improver economies in the world, as the country's surge levels were achieved with low inflation. 

"Other countries may grow at the same level or faster, but they do it by generating inflation and macroeconomic imbalances," Arispe said. 

Likewise, the business researcher noted that over recent years the Andean nation has been between the first and second most dynamic economy in Latin America in a recurrent manner.

He added, "Peru recorded in the last five years an average growth of 5.6 percent and it has displayed a greater dynamism compared to countries with similar credit ratings (2.9 percent)".

Moreover, in terms of prince stability, the firm's analyst said the inflation rate in Peru stood at 2.9 percent in the last five years, while in nations with similar credit risk rating this economic index was up to 3.8 percent. 

"Therefore, it is a growth fueled by engines that do not create macroeconomic vulnerabilities as a result of an enhancement in the country's fundamentals," Arispe said in statements to Andina. 

He noted that despite the slowdown in the global economy last year, the Peruvian economy soar 5 percent in 2013, reflecting a fairly respectable performance in terms of the region's standards and nations with the same investment grade rating.

Peru has been able to maintain its fiscal accounts in order, even with budget surplus and a public debt which continues its downward trend, and currently stands at 18 percent of the GDP, while the country's international reserves (RIN) remain above 30 percent of GDP. 

(END) JJN/AQR/LOG


Published: 2/27/2014
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