With the pandemic, the Central Reserve Bank of Peru (BCRP) raised the reference interest rate to the 0% threshold to make credit cheaper and re-boost the economy; However, the overflow of liquidity—aggravated by global factors such as the Russia-Ukraine war—raised the inflation to levels not seen in more than 20 years. The interest rate, before […]
Tag: GDP
Peru in recession: how does it affect the pocketbook and what should be done to protect finances?
After sustained economic growth between 2004 and 2019, our country faces a recession and there have already been several months with negative figures. In August, the Gross Domestic Product (GDP) fell by 0.63% and this situation is compounded by the reduction in private investment and business expectations. If you want to know more about the […]
Jorge Solís: “A recession has been created that hits the companies of those below”
In a scenario of high interest rates to contain inflation, the municipal banks ask the BCRP to end the restrictive credit policy, since it puts mypes, which are the business DNA of the country, in check. In addition, they demand more direct policies compared to Reactiva and the FAE to keep the sector afloat. -How […]
Economic recession would worsen in 2024 after El Niño hit
The announcement of a recession in the Peruvian economy by the Ministry of Economy and Finance (MEF) has only confirmed the progressive deterioration that had been noted for almost a year and that could degenerate a de-escalation of the GDP until 2026 with the extenuating El Niño (FEN) knocking on the door. Unlike previous presentations, […]
MEF recognizes that the Peruvian economy is in recession
When in July of this year several economists and former ministers of State warned that Peru had entered a recession, after having recorded two consecutive negative quarters, the head of the Ministry of Economy and Finance (MEF), Alex Contreras, came forward and ruled out that this scenario has occurred. “There is a group of economists […]
Minister of Economy admits that Peru is in recession: “I have no doubt”
The head of the Ministry of Economy and Finance (MEF), Alex Contreras, recognized that Peru is going through a recession. This, after a drop of 0.63% was observed in August and accumulated a decline of 0.58% so far this year, according to official figures from the National Institute of Statistics and Informatics (INEI). “At no […]
China keeps benchmark interest rates unchanged, as the market expected
China kept unchanged reference interest rates in the monthly fix on Friday, in line with market expectations, as a series of economic data suggests the economy is stabilizing and the weakness of the yuan limits further monetary easing. The one-year prime rate (LPR) remained at 3.45%, while the five-year prime rate remained at 4.20%. The […]
BBVA Research: new decline in GDP reinforces bearish bias in forecast for 2023
BBVA Research confirmed the downward bias that the growth of the Peruvian economy would have in 2023, a forecast that currently reaches 0.4% of GDP, according to the research platform. BBVA Research’s Macroeconomic Analysis indicated that, by productive sectors, the non-primary component of GDP contracted 1.9%, highlighting the decline in the construction sector due to […]
GDP falls for the fourth consecutive month: -0.63% in August
The INEI figure confirms what was anticipated by the Ministry of Economy and Finance (MEF): the eighth negative month. Thus, GDP fell 0.63% in August and accumulates a decline of 0.58% so far this year (see infographic). The sectors that explain the monthly contraction are construction (-9.57%), financial (-9.68%), manufacturing (-4.11%), agriculture (-4.05%), telecommunications (-2.35 […]
Global debt will be greater than the GDP of the entire planet by 2030, according to IMF
Global debt would exceed 100% of world GDP by 2030, according to a new forecast from the International Monetary Fund (IMF) presented this week at its annual meeting with the World Bank (WB). The multilateral organization specified that the increase is due to the slowdown in the growth of economies around the world, the increase […]
