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Significance
Peru’s previously buoyant economy has been badly affected by the COVID-19 pandemic, contracting by around 13.38% in the first ten months of this year. Investment has been hit, as have employment and poverty levels. With a ballooning fiscal deficit, Peru is being forced to rely on foreign borrowing to cover much-needed public investment.
Impacts
Peru will remain credit-worthy over the medium term despite Fitch's outlook downgrade to negative yesterday.
Political opposition to pro-business policies will gain force.
Social recovery will be particularly slow to materialise.
Keywords:
Peru,
LA/C,
China,
economy,
industry,
politics,
social,
bonds,
constitution,
debt,
election,
fiscal,
foreign investment,
foreign trade,
growth,
health,
investment,
legislation,
metals,
mining,
pensions,
agriculture,
poverty
© Oxford Analytica 2020. All rights reserved. This content contains general information about geopolitical, macroeconomic and social developments or (where stated) other matters. It does not contain advice or recommendations that may be relied on. Where links to external websites are provided, this does not indicate that Oxford Analytica or Emerald agree with, endorse or have checked for accuracy the contents of said sites.
2020
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