{
  "title": "Peru: 2025 Article IV Consultation-Press Release; and Staff Report",
  "publication": "IMF Staff Country Reports, June 10, 2025",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2025/06/10/peru-2025-article-iv-consultation-press-release-and-staff-report-567572",
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  "summary": "The 2025 Article IV Consultation with Peru discusses that after a strong recovery in 2024, growth is expected to moderate in 2025, amid global and election-related uncertainty, and thereafter to remain close to potential. Inflation is expected to remain close to the midpoint of the target band.",
  "sections": [
    {
      "heading": "Macroeconomic outlook",
      "content": "- After a strong recovery in 2024, growth is expected to moderate in 2025, amid global and election-related uncertainty, and thereafter to remain close to potential.\n- Inflation is expected to remain close to the midpoint of the target band.\n- Risks are tilted to the downside given elevated external uncertainty, but Peru has ample buffers to cope with shocks."
    },
    {
      "heading": "Financial system and external position",
      "content": "- The financial system is sound.\n- External uncertainty is elevated and represents a downside risk to the outlook."
    },
    {
      "heading": "Fiscal policy, deficit targets, and public debt",
      "content": "- Meeting the 2025 fiscal deficit target would require additional efforts in a pre-election year.\n- In the medium term, further fiscal consolidation measures should be identified to comply with the fiscal rule deficit targets and debt ceiling.\n- Introducing both spending and revenue measures would make the consolidation more balanced and credible."
    },
    {
      "heading": "Structural reforms and growth-enabling policies",
      "content": "- Structural reforms are urgently required to lift potential growth, including updating the fiscal decentralization framework to help boost investments in the critical mineral sector.\n- Enhanced efforts are needed to:\n  - Curb the low but rising level of insecurity.\n  - Reform labor and tax regulations that impose excessive costs for formalizing or growing a business.\n  - Enhance the independence and integrity of judicial bodies and tools to combat corruption impunity.\n  - Build resilience to natural disasters.\n  - Embrace the opportunities of digital technologies and artificial intelligence."
    },
    {
      "heading": "Key takeaways and policy recommendations",
      "content": "- Short-term:\n  - Mobilize additional fiscal efforts to meet the 2025 fiscal deficit target despite pre-election fiscal pressures.\n  - Maintain monetary policy focus to keep inflation close to the midpoint of the target band.\n- Medium-term:\n  - Design a mix of spending and revenue measures to meet fiscal rule deficit targets and the debt ceiling while preserving credibility.\n  - Implement structural reforms to raise potential growth, attract investment in the critical mineral sector, and reduce informality and crime-related constraints on business.\n- Cross-cutting:\n  - Strengthen governance and judicial independence to reduce corruption impunity.\n  - Improve disaster resilience and adopt digital and artificial intelligence opportunities to foster productivity.\n\nSource: Peru: 2025 Article IV Consultation-Press Release; and Staff Report (June 10, 2025).\n\n---\n\n Content in this bundle\n\n- Economic Recovery with Lingering Political Uncertainty\n  - Economic Recovery with Lingering Political Uncertainty (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Economic Recovery with Lingering Political Uncertainty (PDF){rel=\"external\" type=\"application/pdf\"}"
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    "Published: June 10, 2025",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9798229013628.002",
    "After a strong recovery in 2024, growth is expected to moderate in 2025, amid global and election-related uncertainty, and thereafter to remain close to potential.",
    "Inflation is expected to remain close to the midpoint of the target band.",
    "Risks are tilted to the downside given elevated external uncertainty, but Peru has ample buffers to cope with shocks.",
    "The financial system is sound.",
    "External uncertainty is elevated and represents a downside risk to the outlook.",
    "Meeting the 2025 fiscal deficit target would require additional efforts in a pre-election year.",
    "In the medium term, further fiscal consolidation measures should be identified to comply with the fiscal rule deficit targets and debt ceiling.",
    "Introducing both spending and revenue measures would make the consolidation more balanced and credible.",
    "Structural reforms are urgently required to lift potential growth, including updating the fiscal decentralization framework to help boost investments in the critical mineral sector.",
    "Enhanced efforts are needed to:",
    "Short-term:",
    "Medium-term:",
    "Cross-cutting:",
    "**Economic Recovery with Lingering Political Uncertainty**"
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      "title": "Economic Recovery with Lingering Political Uncertainty",
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