Overview

• At PERUMIN 37, Julio Velarde cautioned that politically driven moves to “inflate” the economy deliver short‑term gains but leave inflation and reputational damage to the next president.
• Despite the best terms of trade in roughly 75 years, he said Peru is failing to convert high export prices into investment and growth because domestic regulatory and institutional conditions are not working.
• Velarde underscored that net international reserves stand near US$88.6 billion, about 28% of GDP, and that the sol has been Latin America’s most stable currency this century.
• He noted that U.S. recession fears have largely faded, yet global political‑risk gauges remain elevated, and warned that U.S. tariffs and broader protectionism reduce long‑run productivity and growth in the region.
• His message came as external recognition mounted, including a September 22 letter from Fed Chair Jerome Powell praising his leadership and a recent Doctor Honoris Causa from Universidad Católica San Pablo.