has raised its growth projection for the country's economy from 2.4% to 3% for this year.
The institute underscored that Peru's economy continues showing signs of greater dynamism after accumulating 1.4% growth during the first quarter of 2024.
In fact, economic activity experienced 5.3% growth last April —the highest figure since September 2021.
"This result was driven by the effects of better weather conditions for traditional agriculture and industrial fishing compared to last year," the IPE indicated.
"This was complemented by the greater advance of sectors linked to domestic demand, such as non-primary manufacturing, construction, commerce and services, which were favored by two extra working days compared to the similar month in 2023," it added.
The IPE indicated that high economic growth would have continued in May due to the favorable momentum that sectors which had been affected by adverse climate shocks during 2023, such as agriculture and fishing, would continue to experience.
Proof of this is that anchovy catch in the central-northern zone of the coast accumulates close to 2.2 million tons so far in the second quarter of 2024, a figure 69 times higher than that registered in the same period of 2023.
Outlook
In this context, the growth prospects for Peru's economy in 2024 have improved due to more favorable external conditions –mainly the rebound in mineral prices–, the continued moderation of inflationary pressures, as well as greater confidence of households and companies.
Likewise, the release of funds from private Pension Fund Administrators (AFPs) and the Service Time Compensation (CTS) system will underpin private spending acceleration in 2024's second half.
Faced with this new panorama, the IPE revised upwards its economic growth projection for 2024 from 2.4% to 3%.
Better environment
The IPE pointed out that better conditions for private spending explain most of the increase in the projection for 2024.
"The risks are biased upwards due to the extraordinary liquidity sources that households will experience from the third quarter," it pointed out.