On Friday rating agency Standard & Poor’s said Peru was expected to grow above 5 percent over the next three years, thanks to the country’s strong economic fundamentals, and macroeconomic stability.
According to El Comercio, S&P said Peru’s external liquidity continued to strengthen due to high revenues and increased international reserves.
The credit agency reiterated that it had improved Peru’s foreign currency sovereign rating from BBB to BBB-, due to the country’s strong economic fundamentals and expectations it would keep its macroeconomic policies.
“The low level of net debt in the country, its prospects for high economic growth and strengthening external liquidity, support [Peru’s] current rating,” S&P said, according to El Comercio.
However, the agency also warned that Peru’s high dependence on commodities – which constitute almost 60 percent of its exports and over 30 percent of government revenue – was one of the factors that limiting the country’s rating.