World Bank: Peru has stronger fiscal position to combat COVID-19

00:00 | Lima, Apr. 13.

The World Bank underscored that Peru has a stronger fiscal position to deal with COVID-19, which suggests that it will contain the crisis better than other countries.

"It is indeed true that Peru faces the crisis is in a stronger position than many countries, it was able to put together a fiscal package of 7% of GDP —the highest in Latin America right now— which suggests that it may contain better the crisis," said Martin Rama, World Bank Chief Economist for the Latin America and Caribbean (LAC) region.

Additionally, he stated that the coronavirus (COVID-19) crisis in the region is different to the previous ones, such as that observed during the global financial crisis.

"This is a combination of demand, supply and financing, which makes it more difficult to manage, because it is unprecedented," Rama added.

During the conference "The Economy in the Time of COVID-19," the economist remarked that the World Bank's forecast for the Peruvian economy should be treated with great caution, because this situation is new for everyone.
According to World Bank estimates, the Peruvian economy is expected to contract 4.7% in 2020, slightly above the region's average (-4.6%).


Published: 4/13/2020
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