Proposed by the incoming Kuczynski administration, fiscal stimulus measures —including greater infrastructure investments— seek to increase Peruvian economy's productive capacity, Moody's Investors Service Sovereign Risk Group Vice-President Jaime Reusche affirmed.
"Fiscal stimulus measures [...] are aimed at increasing the economy's productive capacity, which might be beneficial to the country," he indicated.
According to the economist, a rather fine management will be required to maintain fiscal balance, deemed for several years as an economic bastion of Peruvian economy.
In this sense, Peru's long-lasting fiscal prudence and high-level technical officials standing behind the economic plan, were highlighted by Reusche.
Sound macro-fiscal management
Moreover, the appointment of Fernando Zavala as next Prime Minister and ratification of Julio Velarde as Peru's Central Reserve Bank Governor build confidence in the business community.
The officer also explained markets are aware that Peru relies on a sound macro-fiscal management.
Thus, reaching consensus —to allow the coming administration to implement reforms and measures aimed at boosting GDP growth— was deemed as relevant by the analyst.
(END) DOP/RGP/JJN/HMC/MVB
Published: 7/25/2016