Julio Velarde, president of the Central Reserve Bank (BCR), highlighted during the presentation of the September Inflation Report that the absence of imbalances in Peru’s external accounts and Peru’s high level of international reserves will keep the country as the strongest the region.
This was informed last week by Semana Económica. They also indicate that the country currently has the greatest financial strength in Latin America and therefore it will not be affected by political noise.
“Peru has an indicator of financial strength – measured as net international reserves minus external debt as a fraction of GDP (Gross Domestic Product) – of 24, the highest level in Latin America and the third highest among all emerging countries”, Semana Económica informed.
The presentation of the report included a series of changes in the macroeconomic projections for 2018 and 2019. The BCR still forecasts a growth of 4% for 2018 but reduced its estimate for 2019 from 4.2% to 4%. This is due to the impact on the copper price of the commercial tensions between the United States and China, and due to the lower public investment expected by the regional governments’ elections in October.