Peru: 2018 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Peru
IMF Staff Country Reports, July 25, 2018
Source details
- Canonical URL
- Peru: 2018 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Peru
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Bibliographic details
- Published: July 25, 2018
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484369203.002
Summary
- Peru has been one of the top performers in Latin America since the turn of the century: robust growth has helped close the income gap with the largest regional economies and reduce poverty significantly.
- Last year, however, growth was subpar and the poverty ratio increased.
- While high commodity prices are an important tailwind, the economy is facing domestic headwinds.
- The Odebrecht case led to the resignation of President Kuczynski, and the new cabinet has moved quickly to implement various measures and request special legislative powers from Congress.
- The authorities have also been facing the challenge of rebuilding infrastructure following the extreme weather caused by El Niño in 2017.
Key findings and contextual factors
- Robust multi-decade growth has materially reduced poverty and narrowed income gaps with larger regional economies.
- Recent performance: growth described as "subpar" in the most recent year covered; poverty ratio increased in that period.
- External environment: high commodity prices provide an important tailwind.
- Domestic challenges:
- Political disruption from the Odebrecht case, including the resignation of President Kuczynski.
- A new cabinet pursuing rapid policy measures and requesting special legislative powers from Congress.
- Significant infrastructure rebuilding needs following El Niño (2017).
Subject classifications and keywords
- Subject: Currencies, Expenditure, External debt, Financial institutions, Loans, Money, Public debt, Public investment and public-private partnerships (PPP)
- Keywords: accommodative monetary policy stance, central bank, CR, Currencies, Global, headline inflation, IMF World Economic Outlook, income tax tax revenue, ISCR, liability positions vis-à-vis nonresident, Loans, potential GDP, Public investment and public-private partnerships (PPP), rate, staff appraisal
Content in this bundle
- Country Report