Andina

BBVA believes next Govt will maintain guidelines to ensure macroeconomic stability in Peru

09:05 | Lima, Jul. 17.

BBVA Research assumes that the upcoming Government will maintain the guidelines to ensure macroeconomic stability in Peru since this approach has yielded results over the past 25 years, its Chief Economist Hugo Perea affirmed.

"We believe that the 2021 general elections might be particularly intense. There surely be different kinds of proposals (...) but we assume that, in the end, whoever wins the presidency next year will follow the same guidelines that the last administrations in Peru have maintained," he affirmed. 

According to the economist, these guidelines involve discipline on the fiscal side, discipline on the monetary side, and an economy that provides a favorable environment for the private sector —and not the State— to be the protagonist.
 
"So, I think that regardless of the administrations that have ruled the country in the last two and a half decades, the foundations have been maintained, thus allowing Peru to transition from a bankrupt country to a country with potential," he stressed.

In this line, the BBVA Research officer stated that the new ruler will keep in mind the macroeconomic indicators achieved in 25 years, and thus continue the poverty reduction line and the strengthening of the middle class.

"We believe that the economic activity will continue regardless of whether the new leader is a traditional politician or an outsider, that entails a deeper political analysis," he concluded.

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Published: 7/17/2020