Andina

Fitch: Government's proposed reforms can improve Peru's credit rating

Fitch Ratings

Fitch Ratings

14:54 | Lima, Oct. 2.

Government's proposed reforms can improve Peruvian economy's credit rating, Fitch Ratings' Latin American Sovereigns Associate Director Kelli Bissett-Tom indicated Tuesday.

According to Fitch Ratings, mining activity's better performance is encouraging further investment in services and other productive sectors. 

"We're following the referendum and its specific purposes. Above all, we're interested in how it will impact institutions and governance," she told El Peruano official gazette.

The credit rating agency projects the country's economic growth will rise by 3.8% in 2018. Said projection is still lower than official forecasts but it is more conservative in line with the market. 

This upward revision was underpinned by the mining sector's rebound and public investment's better performance

Likewise, Line 2 project and Jorge Chavez International Airport expansion cause a great boost in the Inca country's economy. 

Economic agents' confidence in the country and the recovery in consumption are among the other factors that will stimulate the productive activity. 

Concerning the Pacific Alliance, there is progress regarding the exchange of goods and investment facilitation, which generate opportunities to expand the Pacific Ocean market. 

The presence of Peru in this bloc —alongside Chile, Colombia, and Mexico— results in a better use of international trade. 

"The idea is to benefit from future businesses and promote investment toward these countries. There are also advantages regarding human capital and business exchange," Bissett-Tom added. 

Moreover, the mining sector continues to be attractive to investors, in addition to agriculture. 

Investors also express interest in tourism's great potential. New investments are required to meet the growing number of visitors to the Inca country's cultural and historical destinations. 

"In general, we see Peru as an attractive country for investments and new projects," she concluded. 

(END) DOP/CNA/DTK/RMB

Published: 10/2/2018