Peru could lead economic recovery in Latin America
The International Monetary Fund predicts that in 2021 the South American country will have an economic growth of 5.2%
Peru will lead the economic recovery in Latin America once the Covid-19 coronavirus crisis has been overcome, due to the stimulus plan designed by the Martín Vizcarra Administration, as reported by the director general of the Public Treasury of the country’s Ministry of Economy and Finance, José Olivares.
“Many of the investors consider that with the stimulus package that the Peruvian government is giving, the recovery of the Peruvian economy will probably be faster than in the rest of the Latin American countries,” Olivares said in statements to the Peruvian news agency Andina.
Olivares has alluded to the country’s economic deployment in the health and economic crisis, which represents around 12% of its Gross Domestic Product (GDP) and is the largest mobilization of economic resources of a country in Latin America, according to the IMF.
On the other hand, the director of the Peruvian Public Treasury has underlined the issuance of Global 2026 bonds for 3,000 million dollars (2,765 million euros) in the international market, which the Government carried out last week. This issue was rated by the country’s economy minister, María Antonieta Alva, as “successful”.
“The results have been ‘highly positive’; we have greatly improved the records we had for a foreign currency issue in the capital markets,” said Olivares. Thus, he emphasized that the country achieved “the highest demand” it has historically had, reducing the initial levels announced for the transaction and obtaining the lowest levels observed in recent weeks by sovereign issuers in international capital markets.
Olivares has detailed that the demand for these financial instruments came from investors from the United States (50%), Europe (30%), Asia and Latin America (20%). “Currently, investors worldwide see the papers of the Republic of Peru as the new risk-free asset of the Latin American region,” he stressed.
The IMF’s forecasts for the country place it in a recession of around 4.5%, while next year it will lead the economic recovery in the region along with Chile, with a 5.2% economic growth.
Source: dpa
