Peru's fiscal management is adequate, which gives the country credibility in the eyes of investors,
Moody's Investors Service Vice-President Jaime Reusche reported.
On the other hand, the Moody's officer remarked that the 2022 fiscal results underscore the commitment of economic institutions to maintain fiscal order in spite of the shocks that the country faced.
"Although there were obstacles in the implementation of expenditure, and this helped to reduce the fiscal deficit, slowing some of the momentum of economic activity, the result is that there is more fiscal space this year in order to support the economic recovery," he said.
"Fiscal management continues to be prudent, and this gives the country credibility in the eyes of investors. It is important that the political class support the prudent management of the State's accounts, trusting the capable technocrats who steer fiscal policy," Reusche added.
U.S. financial crisis impact on Peruvian economy
According to the Moody's representative, there is a sharp slowdown in U.S. economic activity this year, as financial conditions will become tighter after the bank closures that have occurred so far.
The low activity in the United States will translate into lower external demand for the Peruvian economy, with a modest correction in prices of raw materials that Peru exports and, consequently, a lower external impulse that would reduce the dynamism of growth this year.
"We do not see a contagion effect on the local financial system, but we do see a moderate impact on activity that would imply a reduction of a few tenths of the economic expansion for this year," he said.
(END) PDO/RGP/RMB
Published: 4/3/2023