Peru: Staff Report for the 2010 Article IV Consultation

IMF Staff Country Reports, April 23, 2010

Source details

Growth in Peru decelerated sharply in 2009, owing to the global financial crisis, but remained positive at about 1 percent for the year, despite a few months in negative territory.
Strong buffers built in recent years allowed Peru to implement a significant monetary and fiscal policy response that helped avoid a credit crunch, support domestic demand, and sustain employment.
The central bank injected substantial liquidity into the financial system and lowered the policy rate to an historic low of 1.25 percent.

Growth:
- Deceleration in 2009 linked to the global financial crisis.
- Overall growth remained at about 1 percent for 2009, with some months in negative territory.
Monetary policy:
- Central bank actions included substantial liquidity injections into the financial system.
- Policy rate reduced to an historic low of 1.25 percent.
Fiscal policy:
- Authorities implemented a significant fiscal policy response to support domestic demand and employment.
Financial sector:
- Policy measures focused on avoiding a credit crunch and sustaining credit flows to the private sector.

Subjects: Currencies, Economic sectors, External debt, Fiscal policy, Fiscal stance, Money, Public debt, Public sector
Keywords: capital market, central bank, CR, credit crunch, Currencies, debt, Fiscal stance, Global, inflation expectation, ISCR, macro-economic indicators, Peru, Peruvian economy, private sector, Public sector, short-term debt

International Monetary Fund — Peru: Staff Report for the 2010 Article IV Consultation (April 23, 2010).

Peru: Staff Report for the 2010 Article IV Consultation; IMF Country Report 10/98; March 26, 2010
- Peru: Staff Report for the 2010 Article IV Consultation; IMF Country Report 10/98; March 26, 2010 (Markdown version)
- Peru: Staff Report for the 2010 Article IV Consultation; IMF Country Report 10/98; March 26, 2010 (PDF)