BCA recommends buying Peru dip, citing strong economy and policy space

Published 29/08/2025, 14:20
BCA recommends buying Peru dip, citing strong economy and policy space

Investing.com - BCA Research has issued a recommendation to buy the dip in Peruvian assets, highlighting the country’s strong economic fundamentals despite upcoming political uncertainty. The research firm points to fiscal restraint, booming metals, and a weakening U.S. dollar as factors that will provide the next administration with significant policy space.

BCA anticipates Peru will elect an anti-establishment president, noting that current fragmented polling likely understates support for populist candidates, particularly on the left. This electoral outcome could temporarily unsettle markets, creating buying opportunities for investors.

The research firm emphasizes that Peru’s institutional framework will help maintain orthodox economic policies. The return to a bicameral Congress is expected to strengthen checks on presidential power and secure macroeconomic orthodoxy for at least the next few years.

BCA acknowledges potential risks to global metals from escalating mining protests, blockades, and illegal gold activity that could threaten Peruvian metal output. Despite these concerns, the firm maintains a positive outlook on Peruvian assets.

The research maintains a neutral external outlook, stating that Colombian tensions and U.S. tariff threats will not significantly impact Peruvian assets, while expected Chinese fiscal stimulus in coming months could provide support. BCA concludes it will look to buy into election-related market volatility.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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