Peru’s medium-term growth prospects are amongst the best in the region. But in the near term there is a mounting risk of overheating and tighter fiscal policy is needed to cool demand. In this respect, the major risk posed by the emergence of Ollanta Humala in the Presidential election race is not that he will pursue a Chavez-style takeover of the commanding heights of the economy, but rather that lax fiscal policy will fuel a boom-bust cycle.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services