has raised its growth forecast for Peru's economy to 3.2% for this year, according to its recent
published in October 2026. The new projection is higher than the 2.7% forecast previously made in April.
The document also projects that Peru's gross domestic product (GDP) will grow by 3% in 2027.
Regional leadership
The report notes that Peruvian economic growth rate this year would rank second in Latin America, behind only Paraguay, whose economy is projected to rise 4.7% in 2026.
Thus, Peru's GDP growth would be higher than that of Ecuador (2.8%), Colombia (2.3%), Brazil (2.1%), Argentina (2.1%), Mexico (1.4%), and Chile (0.8%).
In this regard, the World Bank highlighted that Peru benefits from private investment in copper and infrastructure, with consumption recovering steadily.
Exports
"Peru, following the 2023 contraction, has maintained its annual growth above 3 percent, supported by copper exports and infrastructure investment," it indicated.
The report projected that private consumption is set to remain the primary driver of demand across most Latin American and Caribbean economies in 2026, although its growth is moderating.
"Notable exceptions include Peru and El Salvador, where private investment is expected to play the leading role," it emphasized
However, medium-term gains will depend on sustaining the mining pipeline and addressing long-standing structural bottlenecks that constrain potential growth and private consumption.
Resilient region
Overall, the regional macroeconomic landscape in 2026 has been characterized by steady resilience, with consumption providing a reliable floor for activity.
Yet unlocking a broader investment-led acceleration hinges on the effective execution of domestic structural reforms and a durable easing of financing costs, even as the region continues to navigate an external environment largely shaped by exogenous shocks and global policy uncertainty.
"With the US dollar no longer rising steadily as it did in 2024, central banks have more flexibility to adopt a patient, data-dependent stance—choosing to pause or cautiously calibrate policy rather than being forced into reactive tightening," the report stated.
However, the balance of risks remains tilted by global trade tensions, volatile energy prices, and stubborn domestic services inflation.
Given the current environment, policy makers must continue to act cautiously to protect the trust they have worked hard to build and keep inflation expectations well anchored, the WB stated.