IMF recognition of Peru's economic fundamentals to draw investments

Photo: Courtesy

Photo: Courtesy

08:41 | Lima, May. 29.

The recent recognition by the International Monetary Fund (IMF) of Peru's sound economic fundamentals will enable it to attract new investments for infrastructure development in the country, ESAN University Economics Professor Bill Gee indicated.

"The fact that the IMF highlights this Peruvian economy's strength is crucial for attracting investments," he told Andina news agency.

Gee explained that capitalists from all over the world are attentive to the reports by the multilateral entity to make decisions about upcoming investments.

"The IMF report in these terms will enable (Peru) to attract new foreign investments," the ESAN professor said.

Key reforms

The multilateral entity also highlighted Peru's institutional framework, sound economic fundamentals, and consistency in adopting essential macroeconomic reforms despite social tensions.

In this regard, Professor Gee said the Peruvian monetary policy currently has an expansionary nature, meaning it seeks to increase output while keeping inflation stable.

"Despite non-compliance with the fiscal rule, we continue to maintain sound macroeconomic fundamentals," he stated.

Expanding economy

The economist commented that growth forecast for Peru's economy this year (2.5%) by the International Monetary Fund is conservative, because national productive activity could grow even more.

"Gross domestic product growth this year could be higher than the IMF estimate," he expressed.

In this sense, Gee was more in favor of projections by the Ministry of Economy and Finance (MEF) that point to a 3.1% growth for this year.

"It could even be higher, but this will depend on the course of mining projects, as well as on the dynamics of the fishing and agriculture sectors that might encourage greater productive activity recovery," he said.

The IMF highlighted the upturn of Peru's economy despite social tensions at the beginning of 2023 and climate change impacts on the country. Thus, it forecast 2.5% GDP growth for this year.


Published: 5/30/2024