Ratings agency Moody's expects Peru's President-elect Keiko Fujimori to bolster investor confidence and preserve policy continuity, helping the Andean nation sustain growth despite political polarization and fiscal challenges.
Fujimori's government is likely to maintain policy continuity, safeguard institutional pillars such as an independent central bank and respect contract and property rights, Moody's said in a report issued on Thursday.
Continued policy stability would likely unlock delayed mining and infrastructure projects, supporting growth rates near the 3.5% average of 2024-25.
Political risks are expected to lessen but may still constrain Peru's stable credit profile, with polarization and a fragmented Congress likely to continue generating political uncertainty.
Peru's government debt remains at 30% of GDP, providing meaningful shock-absorption capacity.
Moody's said questions remain over how quickly Peru can narrow its fiscal deficit.
Right-wing Fujimori, elected on her fourth presidential bid, defeated leftist Roberto Sanchez by just over 49,000 votes, or a margin of 0.3 percentage points.