Pedro Castillo: reviews the most important news of the president for Saturday, March 19, 2022 | peter castle

The financial rating agency Standard & Poor’s (S&P) announced this Friday that it lowered Peru’s long-term foreign currency debt rating from ‘BBB+’ to ‘BBB’, being the second lowest rating in investment grade.

Among the rating agency’s arguments for this review is that the persistent political paralysis in Peru is weakening efforts to maintain solid investor confidence and limits growth prospects.

“Prolonged government paralysis reduces the predictability of policy responses, limiting investment and potential growth, in our view. We forecast a GDP growth of 2.5% in 2022, after a rebound of 13.3% in 2021, with a high dynamism in exports, somewhat offset by moderate investment and consumption”, explains S&P in its report.

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