Peru: Selected Issues

Author: International Monetary Fund

Volume/Issue: Volume 2004 Issue 156

Publication date: May 2004

ISBN: 9781451831047

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Topics covered in this book

This title contains information about the following subjects. Click on a subject if you would like to see other titles with the same subjects.

Exports and Imports , Labor , Economics- Macroeconomics , Money and Monetary Policy , Public Finance , ISCR , CR , cost , trade , foreign currency , government , rate , employment growth , balance sheet approach , dollar liquidity , dollarized economy , reserve holding , Peru investment climate survey , Pensions , Pension spending , Fiscal federalism , Financial statements , Currency mismatches , East Asia , Western Hemisphere , South America

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Summary

This Selected Issues paper focuses on policies to promote high, sustainable growth in Peru, the risks posed by dollarization, and key medium-term fiscal issues of decentralization and social security reform. The paper identifies the main impediments to output and employment growth and proposes steps to remove them. It uses a balance sheet approach to analyze Peru’s highly dollarized economy, and finds that the factors explaining Peru’s relatively low international trade levels are related to the impediments to growth. The paper also looks at the main impediments to high, sustainable output, and employment growth in Peru.