Peru Proves Emerging-Market Standout as Bonds Outperform
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At a time when the collapse of commodity prices is roiling countries from Venezuela to Russia, Peru is showing that it’s one of the few developing nations positioned to weather the plunge.
After running budget surpluses for three straight years and stockpiling $8.6 billion in a rainy-day fund, Peru has cut taxes, boosted spending and chopped interest rates to shore up economic growth. President Ollanta Humala has also attracted investment into agricultural and energy projects to reduce Peru’s dependence on mining, which accounts for half of its export revenue.