Global Head of Emerging Markets Research for J.P. Morgan Luis Oganes has projected that the
Peruvian economy may grow 10.8% or even more this year as a result of the progress in the vaccination program, depending on the signals given by the new Government.
At the event "2021 Post-Election Economic Outlook and Scenarios," he estimated that the country is likely to reach GDP growth of 4.1% next year.
"Foreigners in some way gave him the benefit of the doubt," he said.
According to the JP Morgan official, if Castillo —in the event that he is proclaimed President of Peru— tries to use that to his advantage, he might manage to implement many proposals.
He went on to say that further social spending is required and, although it will be difficult to shorten the fiscal deficit with a credible medium-term plan, the country can finance itself at adequate rates —which are not higher than the current ones— and preserve its access to the market.
Furthermore, he remarked that changes in the economic provisions of the Constitution are not necessary.
(END) MMG/JJN/RMB/MVB
Published: 7/13/2021