Moody’s highlights Peru’s fiscal discipline and credibility

Moody’s Ratings has highlighted Peru's fiscal discipline, noting that the country maintains a higher level of credibility compared to other nations with similar credit ratings. Renzo Merino, Vice President of Sovereign Risk at Moody’s, stated that Peru’s recent proposed changes to fiscal rules are minor and unlikely to significantly alter the government's expected fiscal trajectory.

In a regional comparison, Moody’s noted that countries like Panama and Colombia have implemented more drastic changes to their fiscal frameworks. Specifically, Panama increased its deficit limit to over 10%, while Colombia suspended its fiscal rule to avoid spending adjustments. In contrast, Peru maintains a basic deficit rule and limits on public spending growth.

Despite recent deviations in fiscal rule compliance, which have seen public debt return to approximately 30% of GDP, the agency emphasized that the focus remains on maintaining fiscal strength and the credibility of public accounts.