Business and consumer confidence have evidenced a highly-positive reaction to the government's proposals during its first 100 days in office, according to Moody's Investors Service.
"Business and consumer confidence have reacted in a highly favorable manner to the government's proposals. While consumer [confidence] has recently moderated, Peru is seen from the outside with a lot of optimism," Moody's Sovereign Risk group Vice-President Jaime Reusche told Andina news agency.
The economist added President Kuczynski's first 100 days have proved highly encouraging.
"This administration's first three months have been quite encouraging. There's readiness to enhance the management of the State and work for Peru," he pointed out.
Such recovery in business and consumer confidence is partly underpinned by the optimism perceived among ministries' technocrats and officials, "something not felt before."
"The Cabinet [of Ministries] is demanding a lot from technicians. Rather than becoming annoyed, these good State professionals have grown enthusiastic about the challenges posed. This is something we should all be proud of," he stressed.
Said optimistic climate has shrunk risk premiums, leaving room for the Executive's recent debt-reprofiling transaction, described by Reusche as "a success."
Speed
The risk analyst highlighted President Kuczynski's administration has set off "at full speed."
"Overall, it's a full-speed start for a government seeking to unblock the economic and operational stagnation slowing growth," he observed.
"Nevertheless, the shadow of corruption has peeked out, sullying the government's good start," he warned in reference to former presidential Health advisor Carlos Moreno, accused of running unethical businesses.
In this respect, Moody's executive noted the last corruption scenarios serve to remind the government about challenges to increase State transparency, enhance efficiency and contribute to the country's development.
"The bars are set high for this government, and economic confidence is sensitive to political noise. Thus, there's significant risk of disillusionment once the government's honeymoon period is over, and we run into other corruption cases coming to light," he said.
Finally, he noted that "the important thing is to remember that we've already left the [economic] slowdown 'bump' behind, and the government is willing to work for the country's development."
(END) RGP/JJN/DHT/MVB