On 15 July 2016 the IMF published a report following the conclusion of talks with Peru under Article IV of the IMF’s articles of agreement.
Peru’s economy has weathered the economic crisis and has become the largest growing in the South America region. Growth in 2015 reached 3.3% owing to higher metal production, increased fishing and a recovery in the service sector. Activity could increase further in 2016 and 2017 if domestic projects currently in the pipeline are carried out effectively.
The IMF recommends that gradual fiscal consolidation is necessary. In addition to containing current spending the recommendations include improving the low revenue collection by streamlining the tax administration; reducing informality and exemptions; and protecting the tax base from potential profit shifting by multinational corporations.
