The president of the Central Reserve Bank of Peru explained that this is due to the high impact of coastal El Niño.
September 17, 2023 | 2:49 p.m
Julio Velarde, head of Peru’s central reserve bank, said last quarter that the Peruvian economy would grow by just 0.9% in 2023 and no longer at 2.2%.
During the presentation of September 2023 Inflation Report, The head of BCRP explained that this is due to the high effect of coastal El Nino and the persistence of low consumer and business sector confidence.
“Compared to our previous report, we expect growth for the year to be 0.9%. As you can see, it has been hit hard by the primary sectors, before growth was expected in the agriculture sector, and now we are at a contraction of 2.0%.” He said.
“Earlier, growth was expected in the agriculture sector, now we are at a contraction of 2.0%. This derives from the drought in the south of the country earlier in the year, but is essentially due to the effects. El Nino in the north“, was added Julio Velarde.
Velarde revealed that citizens feel these effects on the price of lemons, for example. However, it goes beyond the agricultural sector. “Fishing has the biggest impact, we expect a drop of almost 27%. It also affects production like fishmeal.” said the banker.
Inflation indices
On Inflation to 2023, Chairman BCRP It will no longer be 3.3% in 2023, but 3.8%, he noted. The economist pointed out that this estimated increase is due to climatic events affecting food prices.
However, he predicted that inflation would return to the target range of 1% to 3% in the first months of 2024.
