Peru

Following the snap legislative elections in January 2020, dynamics between the Vizcarra Administration and Congress are expected to be less contentious. GDP growth should accelerate slightly in 2020, based on an improved political outlook and better prospects for primary sector output and public infrastructure spending. During the year, attention will shift to the April 2021 general election as candidates announce their intentions to run for office and espouse their policy platforms. To accelerate public investment to support growth, the government approved several measures, including a revision of the fiscal targets. However, still moderate fiscal deficits around 2% of GDP should maintain net general government debt below 20% of GDP during 2020-2023. We expect Peru's external indicators to remain solid despite

...Institutional and economic profile Flexibility and performance profile + Following the snap legislative elections in January 2020, dynamics between the Vizcarra Administration and Congress are expected to be less contentious. + GDP growth should accelerate slightly in 2020, based on an improved political outlook and better prospects for primary sector output and public infrastructure spending. + During the year, attention will shift to the April 2021 general election as candidates announce their intentions to run for office and espouse their policy platforms. + To accelerate public investment to support growth, the government approved several measures, including a revision of the fiscal targets. + However, still moderate fiscal deficits around 2% of GDP should maintain net general government debt below 20% of GDP during 2020-2023. + We expect Peru's external indicators to remain solid despite challenging regional and global conditions that could weigh on exports....

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