By Aida Pelaez-Fernandez (Reuters) -Peru’s gross domestic product (GDP) will likely expand by 4% this year and rank as the second-fastest growing economy in Latin America, a senior official told reporters on Monday, as inflation is seen holding for another year at around 2%. The Andean economy is bouncing back from recession, with the government […]
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Peru’s economy seen growing 4% this year with stable inflation
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By Aida Pelaez-Fernandez
(Reuters) -Peru’s gross domestic product (GDP) will likely expand by 4% this year and rank as the second-fastest growing economy in Latin America, a senior official told reporters on Monday, as inflation is seen holding for another year at around 2%.
The Andean economy is bouncing back from recession, with the government of President Dina Boluarte and the central bank forecasting positive prospects for 2025, including fewer inflationary pressures and more investment.
Peru’s economy for decades was one of Latin America’s top performers, but in recent years growth has cooled as social unrest hit the country’s key mining sector amid growing political instability.
At a press conference, Economy Minister Jose Salardi pointed to the expectation of relatively high prices for copper and gold – Peru’s top mineral exports – and a push to cut regulations that should facilitate investment.
In Latin America, Peru’s expected economic growth this year would be surpassed only by Argentina’s likely expansion, according to Salardi.
The Economy Ministry also forecasts inflation of 2% this year, after the annual rate of rising consumer prices closed 2024 at 1.97%.
Salardi added that he aims to lower the government’s budget deficit, in line with established fiscal rules.
Peru’s debt-to-GDP ratio stands at around 33%. The minister added that ratio is expected to go down,” but did not go into further detail.
(Reporting by Aida Pelaez-Fernandez; Editing by Lucina Elliott and Sharon Singleton)