The agency Fitch Rating reaffirmed Peru’s credit rating at ‘BBB’ with a stable outlook. However, he warned about some threats facing the country.
“Risks include political drift and populist measures as the electoral campaign intensifies,” the rating agency indicated in its report.
In that sense, he pointed out that although Peru’s grade is based on solid external liquidity, a history of macroeconomic stability and low public debt compared to other countries, it is limited by weaker governance and a modest per capita income.
Likewise, Fitch considered that the Executive continues to be vulnerable to censorship and has limitations in resisting some proposals approved in Parliament. It should be noted that populism has led to the approval of laws since 2021 that cost around S/36,000 million according to the Fiscal Council.
“Social instability and political uncertainty are expected to persist, affecting governability, as reflected by Peru’s weak governance indicators,” he added.
Meanwhile, he projected that this year the Peruvian economy will grow around 3.2%, but that it will moderate by 2026 with an advance of 2.8%. Downside risks include further deterioration in insecurity, increased social protests, adverse climate shocks and regulatory unpredictability impacting investment and productivity.
On the other hand, and regarding the work of the Central Reserve Bank, the agency estimated that inflation will increase slightly to 1.9% this year and 2.3% next year. In addition, he estimated that there would be no new cuts in the reference interest rate, which would remain at 4.25% this year.
“Macroeconomic stability has generally remained intact, thanks to prudent monetary management, strong external reserves and solid growth,” he added.
TRUST
For its part, the Ministry of Economy and Finance indicated that maintaining Peru’s rating reflects the confidence of international markets in the country’s macroeconomic solidity and in the continuity of responsible and sustainable policies.
Recently, the head of the MEF, Denisse Miralles, stated that a strategy will be promoted to confront informality and the country’s growth.
“Peru is demonstrating that it can grow with order and responsibility. Our objective is to build an environment where investing and generating formal employment is increasingly easier, faster and predictable,” he highlighted during his participation in the China Expo and Peru Cargo Week.
Receive your Perú21 by email or WhatsApp. Subscribe to our enriched digital newspaper. Take advantage of the discounts here.
RECOMMENDED VIDEO
