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2h ago

OECD Warns on Peru’s Fiscal Slippage and Corruption, Cuts Growth Outlook

The report calls for measures worth 0.4% of GDP plus a unified integrity system to restore credibility.

OCDE advierte sobre debilitamiento fiscal y urge reformas para elevar el nivel de vida en Perú
El empleo juvenil sigue rezagado y expertos advierten que el país debe actuar antes de que se cierre la ventana del bono demográfico para generar trabajo formal y mejorar la productividad.
El evento de la CAF se realizó este 29 de septiembre.
Economía peruana. (Fuente: Andina)

Overview

  • Peru ran a 3.5% of GDP fiscal deficit in 2024, breaching its fiscal rule for a second year and raising risks to financing costs and investment-grade status, the OECD says.
  • The OECD projects GDP growth of 2.8% in 2025 and 2.6% in 2026, well below MEF and central bank forecasts, citing weaker investment, external headwinds and domestic uncertainty.
  • Corruption is estimated to cost about 2.4% of GDP, with up to 40% of public investment deployable more efficiently; the OECD proposes a National Integrity and Transparency System, civil service reform and stronger judicial independence.
  • To meet fiscal targets, the OECD urges a 0.4% of GDP package focused on restraining the public wage bill, phasing out inefficient diesel subsidies and trimming tax expenditures, noting low tax revenue near 17% of GDP and high labor informality.
  • Finance Minister Raúl Pérez Reyes counters that exports rose roughly 21% through August and macro fundamentals remain solid, adding that the deficit is projected to narrow toward 2.3% this month and that reforms on APPs, procurement and sectoral laws are advancing.