Peru: Review Under the Flexible Credit Line Arrangement-Press Release; Staff Report; and Statement by the Executive Director for Peru
IMF Staff Country Reports, June 18, 2021
Source details
- Canonical URL
- Peru: Review Under the Flexible Credit Line Arrangement-Press Release; Staff Report; and Statement by the Executive Director for Peru
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Bibliographic details
- Published: June 18, 2021
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513585260.002
Summary findings
- Peru’s very strong macroeconomic policies and institutional policy frameworks have helped anchor strong growth and stability over the past several years and navigate the challenges posed by the COVID-19 pandemic.
- The confluence of a sound inflation-targeting regime, flexible exchange rate, credible fiscal framework, reflected in very low public debt, and sound financial sector supervision and regulation have allowed the country to deploy a robust policy response to mitigate the socio-economic impact of the pandemic while sustaining strong access to international capital markets.
- Following the worst economic contraction in 30 years, economic activity is expected to rebound this year as COVID-19 vaccines are rolled out, and the pandemic is gradually brought under control.
Macroeconomic framework and policy response
- Inflation-targeting regime described as "sound."
- Exchange rate regime described as "flexible."
- Fiscal framework described as "credible" and reflected in "very low public debt."
- Financial sector supervision and regulation described as "sound."
- These frameworks collectively enabled a robust policy response to mitigate socio-economic impacts of COVID-19 and sustain access to international capital markets.
Outlook and projections
- Real GDP is expected to return to its pre-pandemic level by 2022, supported by improved terms-of-trade and a pick-up in domestic demand.
- Economic activity is expected to rebound in the year of the report as COVID-19 vaccines are rolled out and the pandemic is gradually brought under control.
Political context and near-term events
- The second round of presidential elections is scheduled for June 6.
Peru: Review Under the Flexible Credit Line Arrangement-Press Release; Staff Report; and Statement by the Executive Director for Peru, June 18, 2021.
Content in this bundle
- 1perea2021002 — Executive Summary