Economic activity and capital markets in Peru during the pandemic

Abstract

The purpose of the research was to examine the impact of the capital market on economic activity in Peru. The method used was quantitative, applying the S&P 500 Index, the research was applied and descriptive, quantitative data that define the behavior of the stock markets were analyzed through the different behavioral charts and graphs that have been carried out in the macroeconomic and financial environment; and issued by the main institutions, in the period of time that the SARS-CoV-2 virus pandemic occurred. The results show that the capital market impacted the fixed income, which suffered the maximum drop in its quotation in the month of March 2020, by 15% on average, and the variable income decreased by-20.3%. A direct effect between the capital market and economic activity is evident, reflecting in the capital market a drop in Peru of-20.3%, being lower than that of the United Kingdom, which was-24.2%. While the global economic growth of the capital market during the period 2019-2020 was-4.4 % as it was in the years experienced in 1930 in the Great Depression, at-4.6 %.