In view of the coronavirus pandemic, quarantine is an effective measure to slow its spread, but it has an impact on the economic activity of a country. Moody's Investors Service Vice-President Jaime Reusche explains how prepared Peru is to reduce such impact and stand upright.
Regarding the COVID-19 effect on the economy, Reusche noted that a critical situation is taking shape and the impact is going to be severe.
"Our 2020 GDP growth projection is 3%, but we are evaluating the possibility to lower it to 1.5%, or even lower, depending on the length of the crisis," he stated.
The Moody's officer also referred to the fiscal space, saying he agrees with Economy and Finance Minister Maria Antonieta Alva that Peru is one of the few countries in the region with fiscal space to deal with the effects of this disease.
"The fact that the Ministry of Economy and Finance (MEF) has decided to adopt rapid measures to lessen the economic impact, mainly in the most vulnerable sectors, reveals prudence and shows how proactive Peruvian technocrats are," he added.
(END) DOP/WRR/RMB/MVB
Published: 3/18/2020