IMF highlights Peru's economic growth potential

20:23 | Lima, Mar. 28.

In its latest report on Peru, the International Monetary Fund (IMF) highlighted the South American economy's growth potential, resilience, fiscal strength, and strong resilience, the Ministry of Economy and Finance (MEF) reported.

The IMF has published the Article IV Consultation, a document that collects economic and financial information, and discusses with officials the country's economic developments and policies. 

Under this document, the IMF stresses the adequate policies and very strong macroeconomic policy frameworks that have made the economy resilient in recent years.

Likewise, the IMF states that Peru's macroeconomic buffers will help shield the economy from downside risks.

Public debt remains the lowest in the region. Sizable international reserves (about 30% of GDP), access to international capital markets, and a robust financial sector mitigate macroeconomic risks and support the country's capacity to cope with additional adverse shocks.

Moreover, the current agreement in the framework of the Flexible Credit Line (FCL) with the IMF has helped enhance the strong macroeconomic buffers.

Strong resilience

Economy and Finance Minister Alex Contreras pointed out that the IMF report highlights the Peruvian economy's strong resilience, resilience, and fiscal strength.

"Although we have a different 2023 growth projection for Peru, we agree that the country will establish itself as one of the fastest growing economies in the region, with an enormous potential to accelerate growth in the following years," he explained.

Regarding economic activity, the IMF said that the factors explaining the growth are mainly linked to the increased operation of the Quellaveco mine, fiscal stimulus, and higher copper price levels.

In addition, it estimates that Peru's economy will return to its potential growth of 3% in the following years.

(END) NDP/MDV/RMB

Publicado: 28/3/2023