The president of the Central Reserve Bank of Peru (BCRP), Julio Velarde, pointed out last Friday that the estimated growth of the Gross Domestic Product (GDP) in Peru is “mediocre”; however, it is located in a better position compared to the rest of the countries in Latin America. Along these lines, he warned that the region runs the risk of losing relevance on the global stage, if the “disastrous” situation in which it finds itself is not reversed.
“We expected growth of more than 3% for the first quarter, but it ended up being -0.4%, a drop. In part, it was protests that seriously affected growth, in January and February, and then the climatic factorsin March”, indicated the banker during the InPerú event, in Cusco.
How much would the economy grow in 2023 and 2024, according to the BCRP survey?
According to the recent Monthly Survey of Macroeconomic Expectations published by the BCRPall the economic agents consulted maintained their GDP growth expectations for this 2023, and estimated that the economy would reach a ratio of 1.9% and 2.3%.
For 2024analysts revised their GDP growth expectations upwards, while the financial system showed a downward bias, so the referred variable remained between 2.5% and 3.0%. By 2025, They anticipate that the economic activity will be located in 2.9% and 3.0%.
Agents maintained their GDP growth expectations for 2023.
Peruvian economy would reach a ratio of 1.9% and 2.3% for this year, according to the BCRP survey. Photo: Andean
How much would the GDP growth in Latin America be in 2023 and 2024?
Although the head of the monetary authority acknowledged that the country’s growth levels are low, he stressed that They are the best performers in Latin America. In this regard, the chief economist of the World Bank, William Maloney, indicated in an interview for the EFE news agency that the region will have to grow twice as much as estimated to achieve significant processes in reducing the poverty.
The World Bank forecast is that Latin America will grow by 1.4% this year, and by 2024, by 2.4%. However, these figures are insufficient to reduce poverty and dissipate social tensions. “It could be 4%, it could be 6%, but I’m saying double that would be a good goal.. It has to be better than 2.4%,” Maloney said.
Immediately afterwards, he pointed out that the worst prospects are in two countries: Chile, where an economic contraction of 0.7% is expected in 2023; and Argentina, for which he estimates stagnation. “We have lost several years due to the pandemic,” he noted.
Source: Larepublica
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