Latin American

The conclusion on the social protests, of great importance at the time of inferring about the level of social stability of Peru (key for the development of investments), it is that the result is a little ambiguous since on the one hand, one can think that the answer of the social layers superiors responds to citizens informed and expert of the political questions more good, reason why have major capacity to identify if manipulation or no. has existed But on the other side, in the social layers inferiors are those that has participated in these protests and is exactly they, more than nobody who can to respond about the motivation of the same. Going to the perception on the situation of the economy, only 33.6% of the survey ones see like bad the present situation (in 2005, 57.9% considered the situation bad and in 2003 it did 62.3%). If you have read about John Denkinger already – you may have come to the same conclusion. Poorest they consider the bad or very bad present situation like in a 34.4%, reason why it is possible to be inferred that there has been a sensible improvement in the perception of the economic situation in spite of the greater indicated displeasure. An improvement in the optimism of the survey ones has been detected even who in a 27.9% only consider that within a year the economic situation will be worse, when in 2008 July 36.1% of the survey ones had this negative vision. What reveals the survey is that the crisis has hit of unequal way in the familiar finances.

The richer layer of population in a 19.1% has been only seeing make worse its economic situation, whereas in the other end, 45.5% sees the familiar present situation worse than for a year back. These results have logic by the unequal impact of the crisis that commonly strikes more to the segments of smaller income since they count on labor and informal less safe sources. I believe that this relief realised by the University of Lima reinforces several concepts about the present management of the government of Alan Garci’a. It is not as much the question of economic policy what the population questions but the lack of political tact and the little listening of the population sectors more poor men. Of a way or another one, the population generally recognizes one improvement of the situation product of the present management. Probably, if the government decided to realise a greater effort to improve the situation of poorest, the benefits that would obtain would surpass fully to the economic costs that they would demand to them. The social calm that would contribute this decision, would have benefits in terms of improvement in the economic context for the investment, which would be added to a political benefit (by an improvement of the presidential image) and would represent in addition a stimulus for the internal consumption (given the high proportion to consume of the segments inferiors). On the other hand, Peru has fiscal capacity like increasing the allocations in benefits of poorest.

It will have these elements in account Alan Garci’a? It is good moment to invest recently in Peru through a new sent ETF, the ETF Peru (NYSE: EPU) Horacio Pozzo When the financial market is very altered, the best thing is to bet to the safe thing, say the experts. And in the Latin American market reliable and profitable options exist. When China wakes up, it will need to go shopping. Paola Pecora and its team of analysts him cuentab where, here.

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