The Peruvian economy will close this year with a growth of just 1.1%, according to the Multiannual Macroeconomic Framework 2024-2027 published this Tuesday, August 29 by the Ministry of Economy and Finance (MEF).
The reasons behind the reduction in GDP for 2023 — previously set at 2.5% — are the social protests seen at the beginning of the current after the arrival of Dina Boluarte to the presidency and the clamor for the advancement of elections, as well as for weather events such as Yaku and El Niñowhich had a strong impact on agricultural production and prevented the first anchovy fishing season from taking place.
Also, the MEF forecasts that private investment — which has been negative for four consecutive quarters — will end 2023 with a 4.5% drop.
MEF reduced its GDP projection for 2023 from 2.5% to 1.1%.
On the other hand, they estimate that for the second semester — after a negative first half — there will be a recovery in domestic demand, mainly private spending in line with improved business expectations, dissipation of social conflicts and lower inflation.
Already by 2024, The MEF assures that the economy will reach a rate of 3.0% and in the 2025.2027 average, it would reach an average of 3.2%.
Source: Larepublica
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