Fitch Ratings has said the prioritization of spending on health and education sectors in Peru’s general budget for 2012, will contribute to improving the quality of life of Peruvians.

"Giving more importance to social issues and especially health and education, will help to keep the main strengths of the system," said Erich Arispe, senior director of Latin American ratings at Fitch Ratings.

Aripse said that Peru’s improvements in income per capita still did not reach levels comparable to that of nations that have a BBB rating.

Human development indicators are also below those recorded in similarly graded countries, he added.

He stressed that ensuring the efficiency of programs and resources could improve the country's socio-economic indicators.

"The government made its priorities, but they still need show to what extent can social programs be implemented without affecting the fiscal balance, which is one of the main strengths of Peru's credit profile," said Arispe in statements to El Peruano newspaper.

Arispe said as levels of inequality within the country are reduced, this in turn would generate greater consensus on macroeconomic policies that Peru has been implementing in recent years.

"We’ve seen past governments allocate more resources to improve social indicators, but there has not been much progress on this issue, especially in the provinces," he said.

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