The economic reforms introduced in the 1990s, as well as the monetary and fiscal policies implemented in recent years, have placed Peru among the Latin America and Caribbean region’s top macroeconomic performers. During the past decade, Peru managed to bring inflation down to an average of 2.3% and achieve a 5.7% yearly economic growth average.
The resilience of the Peruvian economy is also reflected in its external and fiscal indicators. Currently the central bank’s official reserves are above $47bn. At 30% of gross domestic product (GDP) – more than five times short-run foreign obligations, and 92% of the financial system’s liabilities with the private sector – Peru’s foreign assets provide one of the most powerful financial buffers in the region. On the fiscal front, public debt is 23.5% of GDP (just 12% if public sector deposits in the financial system are deducted). The average maturity is about 12 years, considerably longer than for most developed economies.
