Moody's has forecasted that Peru's President-elect Keiko Fujimori's incoming government will enhance investor confidence and uphold policy stability. The agency highlights that Fujimori is expected to preserve key institutional frameworks, including an independent central bank, and respect property rights, which are crucial for maintaining favorable economic conditions amid political polarization.
This continuity could unlock investments in delayed mining and infrastructure projects, potentially supporting Peru's growth rate near 3.5% for 2024 and 2025. While political risks may diminish, persistent polarization and a fragmented Congress could continue to introduce some uncertainty, affecting the country’s credit stability.
Currently, Peru's government debt stands at 30% of GDP, offering resilience against economic shocks. However, questions remain about how swiftly Peru can reduce its fiscal deficit, indicating ongoing fiscal challenges.
Fujimori, who won the presidency on her fourth attempt with a narrow margin of just over 49,000 votes, has a political landscape marked by polarization. Moody's suggests that while confidence may improve, political risks could still limit Peru’s economic trajectory in the near term.
Moody's has forecasted that Peru's President-elect Keiko Fujimori's incoming government will enhance investor confidence and uphold policy stability. The agency highlights that Fujimori is expected to preserve key institutional frameworks, including an independent central bank, and respect property rights, which are crucial for maintaining favorable economic conditions amid political polarization.
This continuity could unlock investments in delayed mining and infrastructure projects, potentially supporting Peru's growth rate near 3.5% for 2024 and 2025. While political risks may diminish, persistent polarization and a fragmented Congress could continue to introduce some uncertainty, affecting the country’s credit stability.
Currently, Peru's government debt stands at 30% of GDP, offering resilience against economic shocks. However, questions remain about how swiftly Peru can reduce its fiscal deficit, indicating ongoing fiscal challenges.
Fujimori, who won the presidency on her fourth attempt with a narrow margin of just over 49,000 votes, has a political landscape marked by polarization. Moody's suggests that while confidence may improve, political risks could still limit Peru’s economic trajectory in the near term.