13:56 | New York, Apr. 13.
Moody's Investors Service Sovereign Risk Group Vice-President Jaime Reusche estimates the Peruvian economy will expand by 4% this year and 4.5% in 2017, surpassing International Monetary Fund (IMF) and World Bank Group (WBG) projections.
The International Monetary Fund (IMF) on Tuesday rose Peru’s economic growth projection from 3.3% to 3.7% for this year; while the World Bank Group raise its projection from previous 3.3% to 3.4%, although it affirmed that Latin America and the Caribbean will remain mired in recession with contraction of 0.9% this year.
Reusche claims that, according to the latest report on Peru and election results, GDP growth in real terms bottomed out in 2014 after a growth rate of 2.4% that year, reached a turning point at the beginning of 2015, and then saw a rebound to 3.3% last year.
“We maintain our growth projection of 4% for 2016, given the favorable impact of election results on investors,” he noted.
In this sense, he continued, we expect economic growth for Peru to accelerate to 4.5% in 2017.
On the other hand, he noted governance and continuity of reforms are important to support the country’s solvency.
Election results suggest the new Congress will be less fragmented that the current one.
The senior analyst predicts that an eventual Fuerza Popular administration will be in a strong position to push forward reforms.
On the other hand, if Peruanos por el Kambio captures the presidency, it will easily find a common ground with Fuerza Popular to back some structural reforms, he concluded.