IMF: growth of the Peruvian economy will be 10% in 2021, one of the highest in the region

With information from EFE

The International Monetary Fund (IMF) on Tuesday released positive data on the recovery of the Latin American economy in 2021, despite the high inflation expected for this year. For the organization, the Peruvian economy will grow at a rate of 10% in 2021, thus becoming one of the strongest in the region.

Last April, the IMF had advanced a projection of the Peruvian economy of 8.5% for this year. According to this new assessment, the benefits of higher prices for some materials could be essential for metal exporting countries, including Peru.

In the new Global Economic Outlook (WEO) report, the Fund raised its growth forecasts for Latin America in 2021 to 6.3%, half a point above its July forecast, mainly thanks to the good development of the export sector of raw materials.

In the general picture, Chile will be the Latin American country that will grow at the fastest rate, 11% forecast for 2021, compared to 6.2% projected by the IMF in April. In his report, he highlighted the southern country as one of the countries in the world with the best production levels and reserves of copper and lithium, a characteristic that within the current context of growing demand for raw materials has triggered projections for this South American nation.

“Other countries in the region, such as Colombia and Peru will also advance in 2021 by 7.6% and 10%, respectively, while Central America as a whole will grow 7.7%,” the report says.

However, the agency also recalculated a reduction of 0.6 percentage points for the growth projection of Peru’s GDP for 2022, which will go from 5.2% expected in April to 4.6% thereafter.

IMF: inflation for Latam

Inflation in Latin America is the point that most worries the IMF experts, who have predicted that the region will have a price increase of 9.3% in 2021. This means that this year Latin America will be the region with the highest increase of prices around the world.

The IMF’s chief economist, Gita Gopinath, remarked that the Washington-based body has detected widespread inflation in Latin America because it has been affected by the rise in energy and raw material prices, and the different rates of growth. national demands.

“It is important that countries adapt their monetary actions to the specific circumstances of each country,” Gopinath said. Precisely, for 2022 it is calculated that inflation in Latin America will fall to 7.8%, a still high figure.