It is likely that the Peru did not achieve its goal of deficit fiscal 2.8% of Gross Domestic Product (GDP) this year, the risk rating agency warned Fitch Ratings.
Look: Oscar Vera is close to returning to Petroperú
“Looser fiscal policies to support economic recovery amid political instability mean the company is likely to miss its fiscal target,” the company said.
In this regard, he considered that the deficit would reach 3.4% of GDP, which would be the second consecutive year that Peru has not reached the fiscal target.
Fitch Ratings, on the other hand, indicated that fiscal revenues are expected to increase thanks to the recovery of growth and favorable copper prices, but assured that spending cuts are not expected to meet the goals.
PETROPERU EFFECT
The rating agency said that Peru also faces risks from the possibility of greater support for Petroperú. “If support were provided and were substantial and sustained, this could be another source of structural fiscal pressure,” it said.
“In Fitch’s view, a rebound in private investment could be hampered by persistently high political uncertainty. This, coupled with a deterioration in governance in recent years due to weakening political stability and government effectiveness, is reflected in the Negative Outlook on Peru’s ‘BBB’ sovereign rating,” it added.
Take advantage of the NEW EXPERIENCE: receive our enriched digital newspaper by email or WhatsApp!Get to know our plans!
RECOMMENDED VIDEO
