Andina

IMF: Peru managed to resume economic growth in healthy way

Photo: IMF

15:02 | Lima, May. 7.

Peruvian economy has registered a fast and healthy recovery following the internal political clashes, mainly due to corruption cases, International Monetary Fund (IMF) Western Hemisphere Director Alejandro Werner affirmed on Tuesday.

"When one observes the region, specially taking into account the terms of trade clashes and political clashes that this country suffered —in terms of governance and corruption, among others— we can notice that similar shocks affected other countries. However, Peru merely registered a slowdown, and not a recession," the official expressed. 

Likewise, the IMF representative indicated Peruvian society has important challenges in the medium term in the social, human development, and fight against poverty domains.

Model in the region 

"(…) Despite the clashes that have affected the region, Peru is a country from which its neighbors have much to learn," he said. 

Furthermore, Werner pointed out that —in order to boost the potential growth of nations such as Peru— efforts must be undertaken in the physical and human capitals

He went on to add the South American country has taken advantage of the markets and entered a sustained growth stage including the reduction of poverty

It should be noted the IMF keeps its 2019 GDP growth forecast for Peru at 3.9%

Attractive to investments 

On the other hand, the official noted one of the Inca country's main strengths is its predictability. Thus, it is attractive to investments and decision-making.

"The country (Peru) has a low debt level, a good credit rating, and a very positive access to markets. For that reason, the consolidation of its fiscal situation (1% of GDP by 2021) is possible, and we consider it is within the ranges we think are adequate," Werner concluded.  

Remarks were made during the International Economic Forum Quo Vadis Peru 2019 organized by Lima Chamber of Commerce (CCL). 

(END) CNA/JJN/DTK/MVB


Published: 5/7/2019