Fitch highlighted concerns on Monday regarding Peru’s fiscal challenges and the potential for persistently higher deficits and debt levels in the medium term. This assessment underscores the negative outlook on Peru’s BBB rating since October 2022. While the 2023 fiscal deficit slightly exceeded the 2.4% of GDP target, reaching 2.6% instead of the anticipated 2.8%, this deviation signals risks tied to subdued growth and political uncertainty impacting fiscal performance. For 2024, Fitch anticipates a narrower deficit, contingent on an economic uptick and non-repetition of temporary spending.