Peru: Review Under the Flexible Credit Line Arrangement-Press Release; Staff Report; and Statement by the Executive Director for Peru

International Monetary Fund

No 2021/129, IMF Staff Country Reports from International Monetary Fund

Abstract: Peru’s very strong macroeconomic policies and institutional policy frameworks have helped anchor strong growth and stability over the past several years and navigate the challenges posed by the COVID-19 pandemic. The confluence of a sound inflation-targeting regime, flexible exchange rate, credible fiscal framework, reflected in very low public debt, and sound financial sector supervision and regulation have allowed the country to deploy a robust policy response to mitigate the socio-economic impact of the pandemic while sustaining strong access to international capital markets. Following the worst economic contraction in 30 years, economic activity is expected to rebound this year as COVID-19 vaccines are rolled out, and the pandemic is gradually brought under control. Real GDP is expected to return to its pre-pandemic level by 2022, supported by improved terms-of-trade and a pick-up in domestic demand. The second round of presidential elections is scheduled for June 6.

Keywords: FCL arrangement; track record; FCL approval; FCL resource; inflation expectation; IMF's transparency policy; anchor market confidence; Credit; Public sector; COVID-19; Global; Caribbean (search for similar items in EconPapers)
Pages: 38
Date: 2021-06-18
New Economics Papers: this item is included in nep-mac
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