LatinNews Daily - 28 September 2023

* The Organisation for Economic Co-operation and Development (OECD) has released a report on Peru, in which it predicted that economic growth would be 1.1% this year, before rising to 2.7% in 2024. Whilst the report forecast that “high interest rates, inflation and political uncertainty will constrain private consumption and investment,” it did note that public-private partnerships for infrastructure development should boost investment. In terms of fiscal stability, the OECD noted that Peru’s tax revenue of around 17% of GDP is relatively low, and said that “to meet increasing demands for social services and infrastructure while maintaining fiscal sustainability, increased spending efficiency and tax revenues will be necessary”. It highlighted a number of structural reforms that it said are needed to boost Peru’s long-term growth, including streamlining the regulatory system to reduce compliance costs and boost competition; strengthening the rule of law by bolstering judicial independence; reducing corruption; a streamlining of the civil service; and enhancing decentralisation to give regions more autonomy over investment and taxation.