Credit outlook and GDP of Peru at risk due to political crisis

The social outbreak and the lack of consensus in Congress to determine the date of the new general elections have caused risk rating agencies and multilateral organizations to pay special attention to our country.

Thus, the international agency Moody’s decided to review Peru’s credit outlook from stable to negative; however, he kept the country’s credit rating at Baa1which corresponds to degree of investment.

Likewise, the international agency warns that the credit rating may be adjusted downward if social instability, political polarization and the reduction in the effectiveness of policies that lead to abrupt changes in them persist, aspects that would reduce investor confidence. , affecting growth in the medium term and complicating fiscal management.

In this regard, the head of the Ministry of Economy and Finance (MEF), Alex Contreras, indicated that they have already spoken with Moody’s executives to explain the current context and that now the challenge for his office is that in the following months it can be reversed. outlook from negative to stable.

The official added that “It is essential that the dates of the following elections be defined. Any source that generates uncertainty in the country must be eliminated.”

Likewise, it is worth remembering that the senior economist of the World Bank in Peru, Daniel Barco, said that this social tension could lead the organization to revise downward the projection of national economic growth, which currently stands at 2.6 %.

Meanwhile, the International Monetary Fund (IMF) alerted that the The social discontent that exists in several countries of the region –including Peru– can have an impact on the economic activity and growth of the continent.