Andina

BlackRock finds no evidence of macroeconomic risks under new Congress in Peru

00:00 | Lima, Jan. 29.

Chief Investment Strategist for Latin America for BlackRock, Axel Christensen, affirmed that he finds no evidence of risks in the macroeconomic fundamentals that strengthened Peruvian economy, under the new Congress.

The preliminary information on the configuration of Parliament, following last Sunday's extraordinary elections, point to a Parliament without a clear majority for any party.

When asked if the configuration of the new Congress may put the country's macroeconomic policies at risk, he ruled out such possibility.

"There is no evidence that somehow it will be like the tension experienced before, which had triggered changes in the Cabinet and the most visible signs of political uncertainty, thus ending up in a constitutional crisis last year. Now, these types of fears might be reduced a little," he told Andina news agency.

This new distribution changes the dynamic of Peruvian politics to make way for one that probably encourages greater understanding between the Executive and Legislative Branches.

"This does not mean, however, that political groups will not sit together to discuss —as is the case in any democracy around the world— or that they will not negotiate any type of bills from now on," Christensen expressed.

"To BlackRock, as to other investors with investment experience in emerging markets, the political noise is an inherent part of investing in this type of markets," he added.

(END) MDV/RMB/MVB

Published: 1/29/2020