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Peru’s Central Bank Chief Touts Resilience at Davos Despite Political Turmoil

Analysts urge structural reforms to convert stability into faster, inclusive growth.

Overview

  • At a World Economic Forum panel in Davos on Jan. 22, BCR president Julio Velarde said Peru’s growth “has not been so bad” despite years of political turnover.
  • Velarde cited nine presidents in the recent period with the exchange rate barely moving and bond yields holding steady as evidence of macroeconomic resilience.
  • He credited central bank independence and stronger institutions for curbing the macro instability that hobbled Latin America in past decades.
  • Regional voices, including Marsh’s Gerardo Herrera, BID Invest’s James Scriven and economist Mónica Muñoz-Nájar, cautioned that stability has not translated into robust growth as uncertainty continues to deter long-term investment.
  • Panelists highlighted priorities such as better public services, higher-quality education and productivity-focused reforms, noting demographic pressures and technological shifts heighten the urgency.