Peru: Economy likely to grow above regional average in 2022 and 2023

Photo: ANDINA/Norman Cordova

Photo: ANDINA/Norman Cordova

14:00 | Lima, Jun. 17.

The Peruvian economy might expand above the regional average in 2022 and 2023, growing 3.1% this year and 3.2% in 2023, the Central Reserve Bank (BCR) projected on Friday.

BCR Governor Julio Velarde projected that Latin America's GDP might rise by 2% and 2.1% in 2022 and 2023, respectively.

The BCR reduced Peru's growth forecast for this year from 3.4% to 3.1% and maintained the expansion projection at 3.2% for 2023, according to the recent June Inflation Report.

Governor Velarde pointed out that the projection for domestic demand growth was lowered from 3% to 2.8% for 2022 and remains at 3% for 2023.

The official added that private investment might not grow this year but grow 2% in 2023.

Meanwhile, Velarde said that investment growth forecast was reduced from 4% to 2.1% for 2022. It also remains at 1.6% for 2023.

Primary GDP

Likewise, the BCR reduced its primary GDP expansion estimate for the current year from 5.35% to 3.4%. The issuing entity also maintained it at 5.8% for 2023.

This way, it contracted the growth projection for the farming sector from 2.7% to 2.4% for 2022 and lowered it from 2.8% to 2.4% for 2023.

Furthermore, the issuing entity reduced the growth forecast for metallic mining from 5.9% to 2.9% for this year and kept it at 8.4% for 2023.

Non-primary GDP

On the other hand, the BCR raised the non-primary GDP expansion projection from 2.9% to 3.1% for 2022 and maintains it at 2.5% for 2023.

Within this framework, the issuing entity also raised the manufacturing growth estimate from 1.4% to 2.4% for the current year and kept it at 3.3% for 2023.

Moreover, it revised upwards the forecast for trade growth from 2.4% to 2.6% for 2021 and kept it at 2.5% for 2023.

(END) JJN/MVB

Published: 6/17/2022