The agency Fitch Ratings maintained Peru’s long-term (LT) foreign currency (FC) and local currency (LC) issuer default ratings (IDRs) at ‘BBB’ with a stable outlook, supported by its net external creditor position, policy history macroeconomic and fiscal frameworks and moderate public debt.
Through a report, the international agency explained that “the qualification restrictions include governance, per capita income and social indicators lower than the ‘BBB’ median, a high dependence on commodity exports and a low base of government revenue. Meanwhile, the Stable Outlook balances the benefits to public and external finances from high copper prices with the risks of political uncertainty.”
Likewise, Fitch expects Peru’s GDP growth to grow by 2.5% in 2022 and 2023 after a strong recovery of 13.3% of the general growth in 2021. This projection is argued by solid mining revenues due to the expansion of production, the growth of agricultural exports, the recovery of retail and hotel trade, the construction of households and a statistical effect that fueled the recovery last year.
However, he pointed out that the outlook for private investment is moderate, which limits growth estimates. “Mining investments that were already approved or underway continue, but companies have deferred decisions on new investment amid political uncertainty leading to lower future investment and export contributions to GDP growth. Peru’s short-term growth prospects are below the ‘BBB’ median average of 3.7% for 2022-2023″, the agency confirmed in its report.