Peruvian economy is about to join a virtuous circle with an annual growth rate of close to 4%, Moody's Sovereign Risk Group Vice-President Jaime Reusche projected.
"We notice we are about to enter a virtuous circle, in which the [country's] growth
will be around 4%," he said.
According to Reusche, it is necessary to tackle the factors hindering the Andean country's expansion in order to boost its economy.
Therefore, implementing reforms —such as labor overhaul— to allow Peru increase its Gross Domestic Product (GDP) is essential, he added.
In this sense, reforms to the
justice system and productivity, as well as "
tax reforms that could bring stability, among others" must be implemented.
The officer also suggested protecting the fiscal space and saving money for old age.
Likewise, he pointed out the 4% growth projected for next year will provide comfort and create more jobs.
"It's about a high-quality growth since it's the domestic demand the one that recovers […]," he affirmed.
Finally, Reusche suggested not losing sight of long-term projections and focusing on institutional reforms' maturity.
Moody's Investors Service has maintained the Inca nation's credit rating on A3 investment grade with a stable outlook
(END) JAA/MVB