## Peru: 2019 Article IV Consultation-Press Release; Staff Report; Staff Statement and Statement by the Executive Director for Peru

_IMF Staff Country Reports, January 13, 2020_

## Source details

**Canonical URL:** [Peru: 2019 Article IV Consultation-Press Release; Staff Report; Staff Statement and Statement by the Executive Director for Peru](https://www.imf.org/en/publications/cr/issues/2020/01/13/peru-2019-article-iv-consultation-press-release-staff-report-staff-statement-and-statement-48942)

## Other formats

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## Bibliographic details
- Published: January 13, 2020
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513526119.002

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### Economic performance and headwinds
- Peru’s economic performance continues to be strong.
- External and domestic headwinds, including the fallout from Lava Jato corruption investigations, have reduced growth momentum and raised concerns about long-term growth prospects.
- The current slowdown in activity and heightened uncertainty justify policy stimulus.
- After President Vizcarra dissolved Congress in September 2019, new parliamentary elections will be held in January 2020.

### Fiscal and monetary policy assessment
- Policy responses have been appropriate, but further reforms have been delayed by a political stalemate between the executive and legislative powers.
- The fiscal stance is procyclical owing to higher-than-expected revenues and low execution of public investment.
- Monetary policy easing is particularly appropriate given the absence of inflationary pressures.
- Accelerated budget execution would mitigate the procyclical fiscal policy stance.
- In the medium term, additional fiscal space from tax revenues and effective expenditure control is needed to address priorities in infrastructure and social spending.
- A gradual transition to greater exchange rate flexibility would foster financial market development.

### Reform priorities and structural issues
- In addition to infrastructure investment, key reforms are needed to:
  - improve governance and fight corruption,
  - boost competitiveness,
  - reduce informality.

### Subject coverage and keywords
- Subject: Currencies, External debt, Loans, Public debt, Public sector
- Keywords: agriculture promotion law, CR, deficit ceiling, ISCR, October, October data

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## Content in this bundle

- **1perea2020001**
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_Source: https://www.imf.org/en/publications/cr/issues/2020/01/13/peru-2019-article-iv-consultation-press-release-staff-report-staff-statement-and-statement-48942_