Andina

Moody's: Peru on track in fiscal matters

08:30 | Lima, Jul. 29.

Moody's Investors Service Vice-President Jaime Reusche has affirmed that Peru is on track in fiscal matters, adding that the challenge for the next Minister of Economy will be consolidating the deficit reduction path.

Reusche stated that, in recent years, the country has remained consistent in its macroeconomic policy and fiscal management. 

Besides, he said this year's public investment promotion was undertaken in a responsible manner, which was financed by the "rebound" in tax revenues. 

The Moody's senior credit officer explained that the fiscal deficit had widened sharply in 2020, which in turn led to a fairly significant accumulation of public debt.

"But the deficit reduction process until July has taken place in a very healthy and prudent manner, which is what has always characterized Peru," the Moody's representative said in remarks to Andina news agency.

"In addition, these results are likely to remain unchanged until the end of this year, when the fiscal deficit will keep on declining," he added.

The senior analyst noted that the fiscal spending initiatives proposed by President Pedro Castillo on Wednesday will become apparent starting 2022.

(END) MDV/MDV/RMB/MVB

Published: 7/29/2021
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