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Peru’s Worst Crisis Is Mass Job Losses, Castillo’s Team Says

  • Ex-central bank head Dancourt praises recent inflation record
  • Peru assets fluctuate as investors size up next government
Updated on

The paramount issue for Peru’s economy is a swift recovery from the mass destruction of jobs last year, while the widening fiscal deficit and recent inflation spike are both temporary, according to economists advising Pedro Castillo, the nation’s probable next president.

The advisers, ex-central bank chief Oscar Dancourt and former World Bank economist Pedro Francke also said in a joint interview that the nation’s inflation-targeting regime has served the country well and shouldn’t be tampered with, and added that the nation will have no difficulty whatsoever in paying its debts. Both men are potential candidates to become senior policy makers if Castillo forms a government next month.