Peru, second emerging country with greatest macroeconomic strength

Aerial view of Lima

Aerial view of Lima's financial center. Photo: ANDINA/Archive

13:02 | Lima, Jan. 1.

The Central Reserve Bank (BCR) has indicated that Peru is the second emerging market with the greatest macroeconomic strength, according to a recent report by the Bank of America (BofA).

In its biannual ranking of 71 Global Emerging Markets (GEM) economies, BofA placed Peru second, above Russia, Israel, and China.

"Taiwan, Peru, and Israel are doing very well," the US-based bank noted in its biannual guide.

Bank of America explained that next year's GDP growth in GEM is expected to be the highest since 2011 (6.3%) and placed Peru (9.0%) among the three countries with the highest expansion rate —such as Viet Nam (9.3%) and Malaysia (9.2%).

"In addition, this rebound may help to somewhat improve the fiscal situation, which remains the Achilles heel of many countries," BofA stated.

However, it said that "the good news is that inflation is still not a problem in the main emerging markets, except in Argentina and Turkey," which should enable central banks to continue their monetary stimulus policy.

For his part, Central Reserve Bank (BCR) Governor Julio Velarde highlighted the fact that Peru is among the five most solid economies in GEM.

Remarks were made as he presented the Central Reserve Bank's (BCR) latest Inflation Report.


Published: 1/1/2021
Most read