According to the report, this year has ended with a positive outlook for investors and the next year is expected to replicate the trend.
Despite political uncertainty, the Peruvian economy maintains a steady pace of growth. A prudent monetary policy, as well as its integration into international markets, are the key to this success. Thus, 2024 closes with positive results, which allows us to project a 2025 that will continue on this path of moderate but sustained growth. These were the main findings of the conference “Investment Perspectives 2025”, organized by SURA Investments Peru this week.
Based on these results, César Cuervo, Chief Investment Officer (CIO) of the Latin American platform, expressed his optimism about the future of economic activity in Peru by 2025.
"This is due to the stabilization of growth prospects at positive levels, together with an accommodative monetary policy, which would remain on an expansionary path, which creates a favorable environment for Peruvian assets," Cuervo said.
The CIO also highlighted that Sura Investments has perceived a stabilization of economic growth prospects at a regional level. According to Cuervo, the COVID-19 pandemic and its aftermath led market operators and other economic agents to accept the reality that money is not free.
“We lived through months that convinced us that money is not free, because interest rates were at zero. We had negative real interest rates in many jurisdictions for several periods in the last decade and a half. We even had some countries with negative nominal rates, where there were banks that earned credits in order to put to work the balance they paid clients to take out loans and publish the grade. That world is behind us,” Cuervo said.
Sura Investments' report on 2025 investment projections in Peru highlighted that the Peruvian stock market had the second best performance in the region in local currency. These results were maximized because the stability of the sol led the dollar measurement to outperform its regional peers. Along the same lines, it was highlighted that after a recession in 2023, the Peruvian economy has recovered.
This not only involves the return of economic growth, but also inflation returning to the Central Reserve Bank's target range (1-3% annually). The exchange rate is also expected to remain solid in 2025 with a value between 3.70 and 3.80 soles. It should be noted that there is a limited rate differential between local monetary policy and the US Federal Reserve.
