The Central Reserve Bank of Peru (BCRP) reduced its projection of economic growth for 2023 from 2.9% to 2.6%. This lower performance of the Gross Domestic Product (GDP) would be explained by the impact of social conflicts and the rains recorded in the second week of March. However, by 2024 the national economy is expected to grow 3%, a figure similar to that of its previous forecast.
Julio Velarde, president of the BCRP, explained that the impact of the social conflicts was 4% in the first month of the year. He explained that the entity expected growth of 3% in January, however, a fall of 1.12% was registered.
“We are expecting lower growth than we had in the projection of three months ago, both due to the impact of the protests that was more strongly felt in December but was felt in January. In January, the impact that we have felt from the protests has been almost 4% of GDP, we expected a growth of around 3% and it has ended up falling by more than 1%; In February we expect this impact to be less and rather in March there will be a greater impact in some regions of the weather situation we are experiencing now,” Velarde commented during the Presentation of the March 2023 Inflation Report.
The monetary entity lowered the growth of Primary GDP from 6.3% to 5.1% for this year. In detail, now expect the mining metal grow 7%, before an expansion of 8.6% was estimated. While the increase in the Fishing sector would be 5% and no longer 11.6% as projected three months ago.
Macroeconomic projections for 2023 and 2024. Source: BCRP
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