The Ministry of Economy announced a positive adjustment in economic growth expectations for this year, raising the forecast to 3.1%. This optimism is based on substantial increase in exports, investment and private consumption.
After facing a 0.6% contraction the previous year due to recession, the Peruvian economy is showing signs of a solid recovery.
The update of its forecast represents a slight increase compared to the last published by the MEF In a multi-year macroeconomic framework, in August 2023, when it forecast 3% growth.
“Exports will benefit from supply improvement and higher mine production of copper, molybdenum and silver from primary sectors affected by FEN (El Nino event) such as fishing and agriculture. In particular, Depletion of coastal FEN from April 2024 will increase fisheries and agricultural exports“, MEF pointed out.
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“Investments in infrastructure and mining are expected to be implemented at a higher rateThis will allow more job creation and boost private consumption” he added.
Also, private spending will be favored by an improvement in the confidence of economic agents, convergence of inflation to the target range – which will help lower interest rates – and greater availability of liquidity.
Private investment
In addition, a 5% growth in exports is expected, benefiting from a more favorable climate and overcoming adversity such as the El Niño event experienced earlier, which particularly affected blueberry exporters due to fruit quality.
