Peru was one of the least affected countries among the principal economies in the region in January this year, posting a 1% year-on-year drop in the context of the emergence of the second wave of COVID-19 in the region, the Central Reserve Bank of Peru (BCR)
reported on Sunday.
Brazil contracted 0.5% in the period of analysis, while the rest of major economies (Argentina, Chile, Colombia and Mexico) reported drops between 2% and 5.4% in the first month of the year.
Latin America is going through a second wave of COVID-19 and; therefore, lower levels of activity are experienced compared to December.
According to the BCR, after the sharp drop in GDP in the second quarter (-30%), due to the implementation of one of the strictest lockdown measures in the world, Peru has been one of the fastest recovering economies that are getting closer to pre-pandemic levels.
The issuing entity stated that this economic recovery was supported by an unprecedented monetary stimulus since the beginning of the pandemic, which was feasible due to the high credibility of Peru's monetary policy, and fiscal stimulus measures, such as the recent strong growth in public investment.