Thanks to its numerous Free Trade Agreements with different countries, Peru is in a “positive” situation in case the U.S. decides to implement a conservative trade policy, stressed Daniel Gamba, Global Head of Active Equity Product Strategy at BlackRock.
“We believe Peru is not as dependent on the United States as Mexico is, and the fact that Peru has entered Free Trade Agreements with other countries puts it in a positive position,” Gamba said.
He also referred to newly elected Donald Trump, and said perspectives for the United States’ new economic dynamism —due to higher fiscal boost and infrastructure investment— in part will benefit emerging economies such as Peru.
"However, the new, more conservative policy on international trade could affect economies with greater reliance on trade with Americans," Gamba stated.
Remarks were made during the forum “Economic, Business and Investment Outlook—2017, organized by CFA Society Peru.
BlackRock —the largest asset management firm in the world— is responsible to manage more than US$5 trillion in this type of investment worldwide.
Fed likely to raise interest rates
On the other hand, Gamba projected that "one immediate effect" of Trump’s election as new president of the U.S. would cause the Federal Reserve System to increase interest rates by 25 basis points in December 2016.
(END) MDV/MDV/JHM/RMB
Published: 11/27/2016