World Bank cuts growth forecast for Peru from 2.4% to 2.2% in 2023

He World Bank (WB) in June it reduced the GDP growth forecast for Peru to 2.2% from the 2.4% projected in the previous April update. This also represents a decline of 0.4 percentage points compared to the 2.6% with which the year began.

According to the international organization, this growth “slightly weaker than in 2022” is leveraged by an increase in government consumption in its search to “partly offset the weakening of private investment.”

Likewise, the World Bank estimated that it is probable that the interest rates of the monetary policy will remain high throughout the year due to the persistent subjacent inflation above the 3% objective of the Central Reserve Bank (BCRP).

Despite production disruptions caused by protests at copper mines earlier this year, the World Bank expects exports to continue growing at a rate of 5% a year.

However, the report notes that political uncertainty is negatively affecting consumer and business confidence, particularly when it comes to investment.

“Yes, growth in 2024 is expected to reach 2.6%, but this depends on the reduction of social tensions and the gradual recovery of investment,” the Bank said.