Key Points

  1. Peru's government has announced a counter-cyclical fiscal policy to address external shocks, including the impact of El Niño.
  2. The policy includes measures such as issuing bonds to vulnerable families and injecting liquidity into affected businesses.
  3. Peru's fiscal deficit has been reduced to 0.9% of its GDP, the lowest in four years, due to increased fiscal revenues.

Why Peru's Counter-Cyclical Fiscal Policy Matters

Peru's government has announced a counter-cyclical fiscal policy to address external shocks, including the impact of El Niño. The policy includes measures such as issuing bonds to vulnerable families and injecting liquidity into affected businesses. This move aims to mitigate the effects of El Niño, which is expected to be the strongest in 70 years.

The government has also announced plans to increase investment in the next year, with a focus on supporting businesses and families affected by the drought.

At a Glance

Fiscal Deficit0.9%
as a percentage of Peru's GDP
Investment Plan18,000 million soles
to be invested in the next year
El Niño Impactexpected to be the strongest in 70 years
according to Peru's government

Behind Peru's Response to El Niño

Behind Peru's Response to El Niño

Peru's government has taken a proactive approach to addressing the impact of El Niño, with a focus on supporting vulnerable families and businesses. The counter-cyclical fiscal policy aims to stimulate economic growth and mitigate the effects of the drought.

The government's decision to increase investment in the next year is also expected to support economic growth and help Peru's economy recover from the impact of El Niño.

What to Expect from Peru's Fiscal Policy

What to Expect from Peru's Fiscal Policy

  • Increased investment in the next year, with a focus on supporting businesses and families affected by the drought.
  • Issuance of bonds to vulnerable families to help them cope with the impact of El Niño.
  • Injection of liquidity into affected businesses to help them recover from the drought.