Peru: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Peru
IMF Staff Country Reports, May 21, 2024
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- Peru: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Peru
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Bibliographic details
- Published: May 21, 2024
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400276514.002
Economic overview and recent developments
- The economy is recovering from consecutive climate-related shocks and social turmoil at the beginning of 2023.
- Inflation has receded thanks to the central bank’s decisive monetary policy tightening.
- The fiscal position and the financial system remain strong.
- The country is in a period of relative political stability, but lingering political uncertainty is denting the appetite for pressing reforms to boost potential growth.
- Evolving risks are broadly balanced, and Peru has ample buffers to cope with adverse shocks, although the outlook remains uncertain.
Risks and scenarios
- Key domestic risks:
- Intensification of political uncertainty.
- Social unrest.
- Climate-related shocks.
- Key external risks:
- Weak trading-partner growth.
- Commodity price volatility.
- A sharp tightening of global financial conditions.
- Upside scenario:
- A stronger recovery in confidence could support stronger private consumption and investment growth.
Strengths and buffers
- Strong buffers reinforcing macroeconomic resilience:
- Relatively low public debt.
- Abundant international reserves.
- Access to international capital markets on favorable terms.
Policy implications and priorities
- Continued monetary vigilance to ensure inflation remains contained (consistent with the central bank’s prior decisive tightening).
- Fiscal policy to preserve the strong fiscal position while supporting recovery—address lingering political uncertainty that is impeding reform momentum.
- Strengthen resilience to climate-related shocks and social disruptions to protect potential growth and financial stability.
- Policies to restore and bolster confidence to unlock stronger private consumption and investment.
Publication and metadata (as provided)
- Pages: 100
- Volume: 2024
- Issue: 133
- Series: Country Report No. 2024/133
- DOI: https://doi.org/10.5089/9798400276514.002
- Stock No: 1PEREA2024001
- ISBN: 9798400276514
- ISSN: 1934-7685
- Date on landing page: May 21, 2024
- Subjects: Credit, Currencies, Economic sectors, International organization, Monetary policy, Money, Public debt, Public sector
- Keywords: authorities' fiscal consolidation path, budget projection, Credit, Currencies, Global, Public sector, staff appraisal, staff baseline projection, World Bank Group lending
- Supplementary note: IMF eLibrary offers over 25,000 IMF publications in multiple formats.
Peru: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Peru, International Monetary Fund, May 21, 2024.
Content in this bundle
- 1perea2024001