The Central Bank of Peru reported that its president, Julio Velarde, participated in the World Economic Forum panel on “How to unlock Latin America’s growth ceiling” during the annual meeting in Davos, focusing on structural constraints holding back regional growth. Velarde emphasised macroeconomic stability and stronger institutions as foundations for sustained growth, alongside improved public services and long-term investment in education. In his remarks, Velarde pointed to the stability of Peru’s exchange rate and sovereign bonds even during periods of volatility, noting that the currency “has hardly moved” despite the country having had nine presidents. He also argued that macroeconomic instability, reflected in high fiscal deficits and inflation, has contributed to Latin America’s weaker growth relative to Asia, and highlighted that global geoeconomic tensions and competition among major powers are influencing investment decisions and emerging market performance.
Central Bank of Peru 2026-01-21
Central Bank of Peru’s Velarde highlights macro stability and institutional strength as growth drivers at World Economic Forum panel
The Central Bank of Peru's president, Julio Velarde, highlighted macroeconomic stability and institutional strength as key to unlocking Latin America's growth potential at the World Economic Forum in Davos. He noted Peru's stable exchange rate and sovereign bonds amid political volatility and identified macroeconomic instability and global geoeconomic tensions as factors affecting regional growth.