Lima, July 30, 2021.- The vice-president of Moody's Investors Service group, Jaime Reusche, said that Peru is on the right track in fiscal matters and referred that the challenge for the next Minister of Economy will be to consolidate the deficit reduction trajectory. He said that in recent years the country has maintained coherence in macroeconomic policy and fiscal management, as well as in the responsible promotion of public investment this year, financed by the "rebound" of tax revenues.
He explained that the fiscal deficit had widened sharply in 2020, which in turn produced a fairly significant accumulation of public debt.
"But the deficit reduction process up to July has been taking place in a very healthy and prudent manner, which is what has always characterized Peru, and we will likely maintain these results towards the end of this year," he told Agencia Andina.
" That means that, as of July 28th and for the rest of the year, the country is on the right track in fiscal matters, he said. "But again we must be very cautious with what is done with this fiscal space, because the country's fiscal profile has deteriorated quite a bit," he added.
Reusche pointed out that the macroeconomic challenge for the next Minister of Economy will be to continue reducing the fiscal deficit.
"It is critical because the public debt has increased very sharply, and the idea is to stabilize this debt trajectory as soon as possible, so continuing with this process of fiscal consolidation is a priority, he said.
On the other hand, Reusche pointed out that there is still no specific date for the credit risk rating review, but it will depend on the fiscal policy and the public policies to be implemented.