highlighted that Peru has remained the Latin American economy with the lowest inflation so far in the 21st century.
"We have had the lowest inflation in Latin America this century. We have even experienced the longest period of low inflation in the country over the past 50 years," Velarde highlighted.
He made the remarks during a ceremony marking the 205th anniversary of the Declaration of National Independence, held at the Lima Metropolitan Municipality (MML) headquarters.
According to the BCR head, the macroeconomic stability achieved by Peru has truly helped ensure that the South American country "has not fared so badly," despite the political instability seen over the past few decades.
"If you look at this century, we are the country that has grown the most in South America (...) The Dominican Republic, which used to be a poorer country, is now richer than we are simply because it has posted stronger growth since 2014. Even so, we have not fared so badly," he said.
In 2000 Argentina exported four times as much as Peru, while Colombia's exports were 80% higher than Peru's.
However, Velarde noted that last year "we exported more than Argentina and more than twice as much as Colombia."
"If you look at the century as a whole, our exports have increased thirteenfold. Overall, we have not fared so badly. The problem is that political instability in recent years has indeed affected us," he noted.
The economist also said the upcoming figures on Peru's economic performance are expected to be "relatively good," driven by "exceptional export prices, the highest in the past 75 years."
"The trade balance posted a surplus of US$40 billion in May. We expect it to reach US$50 billion (soon). If you look at all the short-term indicators, they appear very strong. VAT revenue is growing at a double-digit rate, capital goods imports are up 27%, and private-sector employment is growing 5.1%," he detailed.
However, the expert warned that El Niño phenomenon will have a substantial impact on economic activities such as agriculture and fishing.
"Through January-April, we grew 3.6%. The May figure released today came in at 1.8%, not because of sectors such as commerce, construction, or even non-primary manufacturing, which continues to perform well, but because El Niño phenomenon is already affecting us," Velarde explained.
“Fishing contracted 74%. Agriculture has barely grown and, if you exclude livestock production, crop production has declined, and that is because of El Niño," he noted.
"The outlook is very positive, but there is a major challenge that will hit us: El Niño phenomenon, and we must be aware of that. The figures we see in the coming months may not be as strong, but that will be the result of a natural phenomenon that is already affecting us," he indicated.
Velarde received the Order of Merit in the Grade of Grand Cross on Wednesday in recognition of his outstanding leadership at the Central Reserve Bank (BCR) over nearly 20 consecutive years.
(END) GDS/MVB
Publicado: 16/7/2026