After three months of protests, from Fitch Ratings they estimate that doubts about Peru’s ability to recover remain latent, since investment is expected to continue to weaken, as well as economic growth.
The foreign agency maintains the Peruvian rating at BBB — that is, with moderate risk —, but they forecast that GDP would grow this year and next by 2%, far from the 2.8% of other countries with the same credit reputation.
Said stagnation of the economic rebound “could undermine the sovereign’s macroeconomic and fiscal trajectory, relative to its ‘BBB’ counterparts. The more restrictive monetary and fiscal policies slowed down domestic demand,” added Fitch Ratings, according to the Bloomberg portal.
Héctor Collantes, associate director of Fitch, indicated to the aforementioned medium that the cornerstone of the crisis is political in nature, as the problems are concentrated “geographically”, which causes the effects to be distributed unequally.
Source: Larepublica
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