Peru's economy could recover faster than in previous crises

Photo: Courtesy of Scotiabank

11:57 | Lima, Oct. 28.

Given its economic strength, the Peruvian economy could recover much faster from the impact of COVID-19 compared to those from the previous international crises it had faced, Lima Stock Exchange (BVL) Board Chairwoman Claudia Cooper highlighted on Wednesday.

The economist said that —in the past— Peru had slow recovery periods that took almost six years, just like the one that emerged following the 1997 Asian Crisis.

"The current recovery could be much faster, because our macroeconomic strengths, basically from the fiscal, monetary, and the financial system, allow for a long-term growth," Cooper expressed.

"But that is not absolute. So, the policies, which may damage that soundness, are basically going to delay our opportunities to continue growing steadily and increasing the population's income," she added.

Cooper highlighted that the growth recorded by Peru during the last 25 years is the result of the State's commitment to an economic institutionalism based on trade openness, private investment, and financial system stability.

She said the significant growth registered by Peru in Latin America during recent years was the outcome of these factors.

"We have obviously earned that through efforts undertaken over the years; thanks to these three pillars, we have basically opened up to the world, we have sought private investment, and we have fought for the stability of the financial system," she concluded.

Remarks were made during her participation in the virtual forum "How can we strengthen the financial system?" organized by the Peruvian Institute of Economics (IPE).

As is known, Cooper served as Economy and Finance Minister between September 2017 and March 2018 during the Kuczynski administration.

(END) MDV/MVB

Published: 10/28/2020

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Peru's economy could recover faster than in previous crises

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