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Business expectations for the Peruvian economy remain pessimistic and at their lowest, a report from Fitch Ratings warns.
Even though the latest BCR survey shows business expectations in Peru rose slightly in July, they are still so low that they are similar to levels recorded during financial crisis as a whole 2008
According to the agency, these prospects were hampered by the protracted political crisis in the country.
The low expectations generated by these “self-problems” of Peru are holding back increasealthough 75% of corporate issuers have a stable outlook.
At the moment, Fitch estimates that the Peruvian economy will grow by 2.3%, less than the 2.5% previously forecast.
Growth will be curbed by tightening fiscal and monetary policyrising oil prices, declining copper prices and the uncertainty associated with the resolution of social conflicts,” said Hector Collantes, Deputy Director of Fitch Ratings.
Collantes also notes that despite the revival of the labor market, jobs are still being created mainly in the informal sector.
The agency clarifies that this is partly due to the fact that the leadership of the President Peter’s castle “He implemented anti-business policies, shuffled five cabinets and faced six investigations by the Attorney General on allegations of corruption.”
In addition, they point out that this leadership closed the dialogue with the private sector and encouraged the development of strikes and trade unions, as well as approved rules against subcontracting.
Source: RPP
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