IMF will revise downward the growth projection of the Peruvian economy

He International Monetary Fund (IMF) “very likely” it will revise Peru’s economic growth projection downwards, according to Rodrigo Valdés, director of the Western Hemisphere Department of said entity. The last forecast was released in October, when Peru’s GDP was expected to be 1.1%; However, the IMF already has more updated data to date and will announce the adjustment in its report in January of next year.

“So, (this is) a slightly old photo. Don’t say that the Monetary Fund is projecting 1.1% growth this year, because in reality that was the October projection. We already have more information, The economy has been a little weaker than we expected, and this will most likely be revised downwards.“said Valdés during his presentation at the 2023 Annual Research Seminar, of the Economic and Social Research Consortium (CIES).

He also commented that, in general, the countries of the region must advance in the construction of clear and stable rules, since social and political crises do have a negative impact on the growth of economies and do not allow the entry of new investments.

“Doing business means betting on the future. And if that future is entangled, one has less desire or demands a very large return from businesses and they stop making investments. Therefore, it is very important that in our countries we move forward in building stable rules, predictable changes to those rules. “So that investment (is stimulated)”said the manager.

Likewise, Valdés explained that Latin America, if it grows “very strongly”, will move to ranges between 2% and 2.5%. While there are more risk factors that economies could face such as increased volatility in commodity prices, new turbulence in financial markets, climate-related crises (the El Niño phenomenon), increase in crime and social tensions.