Key facts
- Peru announced economic measures to counter El Niño's impact.
- Measures include liquidity support and tax payment deferrals for affected firms.
- Fiscal rules will be changed to allow an additional 18 billion soles ($5.22 billion) in investment next year.
- Economy Minister Elmer Cuba cited El Niño, higher oil prices, and rising global interest rates as external shocks.
- Peru's accumulated fiscal deficit stood at 0.9% of GDP in the 12 months through September.
Peru on Thursday announced a package of economic measures designed to mitigate the potential economic slowdown caused by the El Niño weather phenomenon. Economy Minister Elmer Cuba stated that affected companies would receive liquidity support and tax payment deferrals, emphasizing Peru's solvency to fund these initiatives. Cuba identified El Niño, elevated oil prices, and increasing global interest rates as key external threats to the country's economic momentum. Preliminary central bank data indicated that Peru's accumulated fiscal deficit in the 12 months through September was 0.9% of GDP, the lowest in four years, supported by robust tax revenues. President Keiko Fujimori also announced that fiscal rules would be adjusted to permit an additional 18 billion soles ($5.22 billion) in investment next year. Scientists have noted that warmer ocean temperatures associated with El Niño are disrupting marine ecosystems off Peru's coast, posing a threat to the fishing industry.