BCR: Growth of the Peruvian economy may even be “negative” in the first quarter | economy

Central Reserve Bank (BCR) President Julio Velarde said on Wednesday that the institution expects zero growth in the first quarter of this year, although the pace of activity “may even be negative.”

Amid social protests and negative effects of heavy rains that lashed the country, it cut its estimate of economic growth for this year to 2.6% at the end of March, from the previous estimate of 2.9%.

“(In the first quarter) we expect growth close to zero, maybe even negative, partly because of the protests that hit January hard and climate factors that hit March,” Velarde told reporters. The new coin represents Francisco Xavier de Luna Pizarro.

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On the other hand, the official pointed out that the nearly 20% drop in mining investment was the result of “no major mining projects,” except for one in Arequipa that will cost US$1.4 billion to start in September. “It will affect private investment in general,” he said.

However, he indicated that a recovery in confidence is expected as “we are below 2019 to 2018 levels”.

The official forecast maintained by Julio Velarde is that inflation reaches the target range (between 1% and 3%) by the end of the year.

“It (inflation) has come down and it will continue to come down (…) In fact, most central banks I talk to are clearly waiting for inflation to come down. It is also true that it may take longer than expected (…) It is also true that it will take less time than expected,” he emphasized.

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