Peru will continue to report one of the lowest public debt-to-GDP ratios among emerging economies in a post-pandemic environment,
Moody's Investors Service Vice-President Jaime Reusche has affirmed.
"This factor greatly supports the
fiscal strength of the economy, which underpins Peru's current rating," he said at the Inside LatAm Peru webinar organized by Moody's Investors Service.
Reusche explained that while the debt-to-GDP ratio will rise this year to levels not seen in 20 years, the deterioration of this indicator will be moderate in Peru compared to similar economies such as Chile, Colombia, as well as other countries in the region and around the world.
"We should keep in mind that many of these economies have adapted their fiscal accounts and adopted stimulus measures to try to alleviate the effect that the pandemic has had on their economies," he said.
According to Moody's Investors Service, Peru's public debt is forecast to reach 35.4% of GDP this year.
Macro-fiscal management
Additionally, the economist highlighted that one of the great benefits of
Peru's good macro-fiscal management over the past 30 years is to access an extremely low-cost financing.
"This implies savings for the Treasury and that new resources can be channeled to other activities or even used to take further measures and mitigate the effect of the pandemic on the economy," he explained.
The Moody's officer emphasized that Peru is one of the few economies that has benefited from the liquidity currently available in the world as a result of the monetary measures taken by developed countries.
(END) SDD/JJN/RMB/MVB
Published: 12/10/2020