Peru is ranked as the second strongest emerging market in terms of macroeconomic soundness according to the recent report by Bank of America (BofA), due to a significant economic recovery expected for this year, a controlled annual inflation, a high level of reserves and a solid trade surplus, reported the Central Reserve Bank (BCR).
It detailed that in its biannual ranking of the 71 Global Emerging Market economies (GEM), BofA ranked Peru in second place, above Russia, Israel and China.
“Taiwan, Peru and Israel have good rankings,” noted BofA in its biannual guide.
The U.S. bank explained that it expects the highest GEM GDP growth since 2011 (6.3%) next year and ranked Peru among the three countries with the highest expansion rate.
“This recovery will also help improve the tax situation in some way, which continues to be the Achilles heel of many countries,” BofA indicated.
However, it specified that, “the good news is that inflation rate remains unchanged in the main emerging markets, except for Argentina and Turkey,” which will allow central banks to continue with their monetary stimulus policy. The President of the Central Reserve Bank, Julio Velarde, emphasized Peru’s place among the five strongest economies in the GEM, during his presentation on the Inflation Report last December 18.
On that occasion, he emphasized among the indicators of macroeconomic soundness the high level of international reserves, which attained a record of US$ 76,933 million as of December 21.
Velarde also emphasized that Peru's inflation rate remains stable and is one of the lowest in Latin America.
The issuing entity’s forecasts for the inflation rate foresee that the inflation rate will be between 2% and 1.5% at the end of the current tax year.
Likewise, it forecasted for 2020 a current account surplus of 0.7% of GDP, and a historical trade surplus of US$ 13,253 million for this year, due to improved terms of trade in view of the recovery of metal prices.
“We are in a sound position in terms of reserve coverage on short-term debts, current accounts,” he said.