The Gross Domestic Product (GDP) of Peru, despite the prolonged political tension and external blows such as inflation and the conflict between Russia and Ukraine, would manage to grow above 3% for this year, according to Credicorp.
“The (Peruvian) economy has significant growth potential but continues to be limited by issues associated with the political climate, as in the entire region, and now more strongly by the international context (…) in the worst case the Peruvian economy would be growing between 2.7 to 3.5% with the complexities of the current scenario”, he noted. Diego CamachoInternational Research Economist at Credicorp Capital.
However, the specialist emphasized that the forecasts will have to be reviewed weekly, considering that variations of up to 12% in the price of oil “ruin any macroeconomic projection effort.”
On the other hand, he recalled that the BCRP reference interest rate is expected to rise this year to 4.50 or 4.75% “if the crudest scenario of the international situation is incorporated.”
However, he acknowledged that Julio Velarde is clear that the price shock will translate into negative effects on growth, which requires caution in the speed and increases of said rate.
“What is said today is not going to be the definitive word. This geopolitical instability is going to lead to continuous revisions of the macro framework”, he concluded.
Source: Larepublica
Kingston is an accomplished author and journalist, known for his in-depth and engaging writing on sports. He currently works as a writer at 247 News Agency, where he has established himself as a respected voice in the sports industry.
