Peruvian Economy Minister Elmer Cuba pitched new fiscal stimulus plans to Wall Street financiers in New York, reporting strong international investor appetite for Peru.
Speaking at the annual inPeru investment roadshow, Cuba said foreign funds showed unexpected confidence in the Andean nation despite recent political volatility and mounting climate risks.
The minister outlined the government's countercyclical economic package, designed to keep gross domestic product growth above 3.1 percent in 2027 while buffering households and firms against global fuel price spikes and the El Nino weather phenomenon.
Cuba addressed reporters at the Manhattan offices of investment bank JPMorgan Chase following a day of high-level meetings, appearing alongside Mercedes Araoz, the board president of inPeru.
He explained that the delegation travelled to the United States not to sign corporate joint ventures or bilateral government pacts, but to engage directly with institutional managers holding Peruvian sovereign debt.
Meetings with Wall Street institutions
Cuba said officials held discussions with JPMorgan Chase and scheduled further sessions with Bank of America, Goldman Sachs, and Brazilian investment bank BTG Pactual as it expands across the region.
He reported that international investors expressed an enthusiasm for Peru that exceeded expectations, remarking that sentiment among Wall Street funds was even more upbeat than the already positive outlook inside Peru.
The inPeru association is a public-private partnership founded to promote international investment and capital market development in Peru, regularly bringing cabinet ministers, central bankers, and business leaders to global financial capitals.
Araoz, a prominent economist who previously served as Peru's prime minister, economy minister, and vice president, now chairs inPeru, guiding its efforts to connect local industry and policymakers with global institutional capital.
Half of all sovereign bonds issued in Peruvian soles are currently owned by foreign investors, making Wall Street sentiment crucial for the government's borrowing costs and currency stability.
Legislative support and political stability
International investors raised concerns over political durability following a decade of institutional turbulence in Lima, where disputes between the executive and legislative branches have led to frequent cabinet changes and presidential turnover.
Cuba pushed back against those fears, reassuring financiers that the current administration will serve out its full five-year constitutional term.
To support his case, the minister pointed to two recent milestones in the Congress of the Republic that demonstrated working cooperation between lawmakers and the executive branch on economic governance.
The Bicameral Budget Commission passed a supplementary credit bill with 30 votes in favour and two abstentions, without a single negative vote, which Cuba noted demonstrated legislative confidence in the government's fiscal management.
In addition, the congressional Economy Commission, led by Senator Jose Arista, approved the General Account of the Republic, marking the first time in twelve years that lawmakers endorsed the state financial review.
Peru's political system recently underwent structural change, restoring a bicameral legislature with a Senate and a Chamber of Deputies, making cross-party budget consensus an important signal for sovereign credit markets.
Measures against inflation and climate shocks
The government's fiscal plan is structured to shield the domestic economy from external price pressures, particularly sharp rises in diesel costs caused by overseas geopolitical conflicts and attacks on energy infrastructure.
Cuba highlighted targeted subsidies introduced for diesel fuel in cargo and passenger transit, explaining that the relief prevents rising logistics costs from spilling over into consumer prices for groceries and basic goods.
Diesel fuel serves as the primary propellant for freight trucks and passenger bus networks across the country, meaning transport rebates directly protect everyday supply chains from global crude volatility.
Small businesses have also received direct support through compensation grants delivered to micro and small enterprises, known locally as mypes, which generate the majority of urban employment in Peru.
The economic package also responds to El Nino, the cyclical warming of Pacific waters that frequently damages Peruvian coastal infrastructure, disrupts agriculture, and hammers the commercial fishing sector.
Economic growth targets and fiscal outlook
Cuba set an official objective for 2027 to ensure that national economic expansion does not fall below the pace recorded in 2026.
He told investors that output growth during the first half of next year will likely trail the second half, with activity picking up momentum as fiscal measures take hold.
Peru has historically relied on fiscal prudence, low public debt ratios, and substantial central bank reserves to maintain investment-grade credit ratings across Latin America.
Countercyclical stimulus allows the finance ministry to temporarily increase public spending and targeted aid during downturns, supporting internal demand without endangering sovereign debt sustainability.
Delegates will continue meetings with global asset managers in New York throughout the week before returning to Lima, as the ministry prepares to execute its budget program for the coming fiscal year.
