Peru: Selected Issues
May 27, 2015
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This Selected Issues paper describes recent investment dynamics in Peru, and assesses the relationship between private investment and its fundamentals. Over the last decade, average growth in Peru exceeded 6 percent, anchored by a substantial contribution from investment. A series of structural reforms in the 1990s, growing political stability, and the implementation of a solid macroeconomic framework in the early 2000s set the stage for this investment boom. Actions were also taken to strengthen public investment implementation and to enhance the overall investment climate. Now that commodity prices have softened and interest rates are expected to rise, addressing the next generation of structural reforms will be crucial to sustain investment and growth.
Subject: Corporate income tax, Foreign exchange, National accounts, Private investment, Real effective exchange rates, Real exchange rates, Revenue administration, Taxes
Keywords: commodity, commodity currency, Corporate income tax, CR, DSGE model, Global, investment, investment boom, ISCR, mining taxation reform, Peru, Peruvian economy, Private investment, Real effective exchange rates, Real exchange rates, stability contract
Pages:
68
Volume:
2015
DOI:
Issue:
134
Series:
Country Report No. 2015/134
Stock No:
1PEREA2015002
ISBN:
9781513560410
ISSN:
1934-7685
