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OECD: Peru has large international reserves and low public debt
Thursday, June 5, 2025 - 11:01
Fuente: Agencia Andina

They give our country resilience to potential external shocks, according to an international organization.

The Organization for Economic Cooperation and Development (OECD) affirmed that Peru has the resilience to face adverse events that occur internationally thanks to its macroeconomic fundamentals.

"Ample international reserves and a low level of public debt make Peru resilient to potential external shocks," the OECD noted in its latest report, "OECD Economic Outlook: Focus on Latin America - June 2025."

The international organization also highlighted Peru's Gross Domestic Product (GDP) growth in 2024, closing the year with a 3.3% increase, driven by strong domestic demand and a rebound in agricultural and mining exports.

"Public investment increased by 14%, and private consumption was supported by extraordinary withdrawals from pension funds. Private investment began to recover moderately, aided by improved business confidence, easing financial conditions, and the awarding of new public-private partnership (PPP) contracts," the institution said regarding last year's performance.

He also mentioned that economic growth remained strong in the first quarter of 2025, expanding by 3.9% year-on-year.

The OECD also forecasts a reduction in the fiscal deficit, while monetary policy remains neutral, which it described as "appropriate."

"Fiscal consolidation is anticipated for the 2025-2026 period. While high metal prices will support public revenues and reduce the fiscal deficit, additional measures—equivalent to 0.3% of GDP in 2025 and 0.4% of GDP in 2026—are required to achieve the rule's goals," he said.

"Neutral monetary policy remains appropriate, given that inflation expectations are well anchored. Following the recent cut to 4.5%, the policy rate is expected to remain unchanged for the remainder of 2025–2026," he concluded.

Autores

Agencia Andina