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Peru better prepared to face external economic crisis, says IDB
Fidel Jaramillo IDB’s representative in Peru (Photo: Andina)
By Manuel Vigo
April 18, 2012
On Wednesday the Inter-American Development Bank said Peru’s economy is better prepared to face external shocks, than in 2008, according to the country’s fiscal, monetary, financial, and social indicators.
Fidel Jaramillo, the IDB’s representative in Peru, said Peru was much more stable, and efficient than it had been in the past.
"All the fiscal, monetary, social, financial indicators, among others, suggest that if there is an external crisis like the one in 2008, we would be much better prepared, and we wouldn’t experience a recession like 2008’s,” he said, according to Andina.
Moreover, he said, the Central Reserve Bank has plenty of room to reduce the country’s benchmark interest rate.
Jaramillo also highlighted the country’s sound fiscal policies, and said Peru’s Fiscal Stabilization Fund was currently 3.2 percent of the GDP, higher than the 1.4 percent the fund had in 2008.
The country’s international reserves, he said, have also increased to $56 billion, up from the $23 billion in 2008.
"We have to expect the best, but you also have to be prepared for the worst, because there are clouds on the outside, with the epicenter of the crisis in the developed world, especially Europe.”
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