stated that Peru has resilience to face adverse events occurring at the international level thanks to its macroeconomic fundamentals.
The international organization also stressed the growth of Peruvian Gross Domestic Product (GDP) in 2024, closing the year with a 3.3% increase. It was driven by strong domestic demand and the rebound of agricultural and mining exports.
"Public investment rose by 14% and private consumption was supported by pension fund withdrawals. Private investment began to recover moderately, aided by improved business sentiment, looser financial conditions, and newly awarded Public-Private Partnership contracts," the institution stated regarding last year's performance.
Likewise, it mentioned that economic growth remained strong in the first quarter of 2025 with a 3.9% year-on-year expansion.
Moreover, the OECD forecasts a reduction in the fiscal deficit, while monetary policy would remain neutral, which it deemed as "appropriate."
"Fiscal consolidation is planned for 2025–2026. While high metal prices will support revenues and narrow the fiscal deficit, additional measures equivalent to 0.3% of GDP in 2025 and 0.4% of GDP in 2026 are still needed to meet fiscal targets," the OECD stated.
"A broadly neutral monetary policy remains appropriate given well-anchored inflation expectations. Following the recent cut to 4.5%, the policy rate is expected to remain unchanged for the remainder of 2025-26," it concluded.
(END) GDS/JJN/JMP/MVB