High real GDP growth that a significant rise in investment supports Low and declining general government debt burden Still-evolving political institutions in the context of significant economic, social, and ethnic fragmentation Significant (albeit declining) dollarization, with 45% of bank claims on residents in U.S. dollars as of June 2012 The ratings on the Republic of Peru reflect Standard&Poor's Ratings Services' expectation that fiscal and monetary policy continuity under President Ollanta Humala's government will support stronger economic policy flexibility and growth. The Humala administration has emphasized social inclusion and has laid out plans to increase social and infrastructure spending as well as boost public-sector wages. However, the government has also signaled its intent to implement these priorities gradually and
