Moody's: Investors have confidence in Peru's economic strength

11:35 | New York (U.S.), Aug. 12.

Foreign investors seem to be immune to the latest Peruvian political events —especially to the early general elections proposal submitted by the Executive Branch to Congress— and have confidence in the strength and positive performance of the national economy, Moody's Investors Service Vice-President Jaime Reusche affirmed on Monday.

According to the officer, the investors' perspective on Peruvian GDP's performance is positive, as they consider the Inca country is a safe harbor in a region that shows high volatility.

Likewise, Reusche indicated it is important that Peru is regarded as the economy with the lowest risk in the region, as it is an indicator that is taken into account when making investment decisions.

"We should add the resilience proved by the economy, that is to say, its capability to face adverse circumstances and to know how to overcome them. This is essential, as it generates confidence and security," he told El Peruano official gazette.

Local investors

Concerning local investors, the Moody's representative pointed out they have become more sensitive to political events.

"Naturally, the local investor has a greater influence on short-term economic activity. However, we must remember the average Peruvian is calm regarding the decision of calling for (general) elections," Reusche expressed.

Pending task

Furthermore, the officer stated the next administration must pay special attention to the economic framework, as it has registered modest growth over recent years.

"The economy is expanding far from its true potential. This is a pending task that the new government must move forward with necessary reforms and policies aimed at supporting competitiveness," he concluded.

(END) DOP/CNA/DTK/MVB

Published: 8/12/2019

Moody's: Investors have confidence in Peru's economic strength

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