Peruvian Economy is strong in spite of a tough international context that puts pressure on regional currencies due to a good macro-economic management by authorities which encourages an important fiscal capacity, the Inter-American Development Bank (IDB) representative to Peru (IDB) Elba Caro reported.
“The economy of Peru is very strong in macro-economic terms and in all its indicators,” she said.
"In this sense, we notify what different analysts and organizations have stated – Peru has a reserve, resource and tool margin to develop,” she was quoted as saying by Andina news agency.
Caro explained that such fiscal strength allows the country to maintain its current investment rate credit rating.
In addition, its broad international reserves are a sign to the outside world that they can meet their financial obligations.
Terms of Trade
“Peru has capacity (currencies) to cope with problems resulting from changes in the terms of trade, which is a support with regard to its debt capacity abroad,” she stated.
Such fiscal soundness is possible thanks to the good macro-economic management in good times of high commodity prices, since the country developed a good preventive plan that now enables it to implement countercyclical policies.