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As Some Fret on Stimulus, Peru Goes All In and Gets Rewarded

  • Markets outperform during crisis as investors cheer spending
  • ‘Fiscal deficits are no longer a bad word,’ Pictet says
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While Latin America’s two largest economies, Brazil and Mexico, fret over the wisdom of pursuing large economic stimulus packages that could erode fiscal targets, Peru is going big and getting rewarded.

First it led the way on direct payments to citizens amid the coronavirus pandemic -- pledging to put money in their hands before President Donald Trump first floated the idea for the U.S. Now the Andean country has unveiled a stimulus package that equals about 12% of its gross domestic product, the biggest in all of the Americas.