Lima, Apr 26 (EFECOM).- Peru's Minister of Economy and Finance Jose Arista said this Friday that the country's economy is “in a process of clear recovery”, after rating agency Risk S&P downgraded the credit rating. Global ratings
“Economic restructuring is a government policy prioritized by this administration and we can point out that our economy is in a clear recovery,” the minister pointed out on social network X.
This Friday, risk rating agency S&P Global Ratings adjusted Peru's credit rating downwards from BBB to BBB- due to the political uncertainty the country faces, which is “limiting the growth” of its economy.
“A fragmented Congress and the government's limited political capital weigh on the confidence of private sector investors and represent an opportunity cost of growth, limiting Peru's ability to rebuild fiscal space,” the agency noted.
After last year's contraction, the rating agency indicated that it expects a “moderate” economic recovery in Peru's GDP in the 2024-2025 period.
But Arista said the country maintains investment grade and “the outlook for the country's future long-term ratings is stable.”
“S&P's downward update is largely based on what it calls 'a complex political panorama', what we call political noise,” the minister said.
Political fragmentation and instability and lack of organization affect governance and have become factors that reduce investor confidence and range and build consensus on the part of management to implement policies with greater impact.
“This situation opposes our objective of reviving the economy, which is why we have a duty to come together to give more impetus to growth and development that will bring us jobs and well-being,” the minister added.
On the other hand, Fitch Ratings reaffirmed Peru's credit rating at BBB, highlighting macroeconomic stability and a framework of disciplined policies, despite political instability.
He disclosed that the two credit rating agencies “highlight the country's financial strength based on the fact that its public debt is below the average of its debt peers”.
“We take the opinions of the classifiers with a great sense of responsibility, and they continue to inspire us to make the necessary changes and to redouble our efforts in constructive dialogue for the advancement of Peruvians and to improve governance in our country. “Arista concluded. EFECOM
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