Peru’s Economy Gets a Wake-Up Call. Will Its Leaders Listen?

Peru is a rare emerging market country that has time to address long-term issues without putting immediate growth at risk — but only if it takes advantage of that grace period to act. Peru’s primary economic headwinds include reduced growth momentum, with concerns about the country’s long-term financial prospects and political stalemates delaying crucial economic reforms. Such headwinds could hamper fiscal deficit reduction if Peru cannot legislate tax increases or resist spending pressure. In addition, global GDP growth will determine the demand for commodities and metals prices. …