Peru Central Bank Lowers GDP Projection, Sees 6.4% Inflation for 2022

Peru's central bank on Friday said it had reduced its growth projection for 2022 to 3.1% from 3.4% previously amid global economic volatility and a recent disruption to mining activity in the Andean nation, Reuters reported. The bank maintained its estimate for 3.2% GDP growth in 2023, bank president Julio Velarde said in a presentation accompanying its latest macroeconomic projections report. It saw a lower fiscal deficit for 2022 of 1.9% of GDP compared to a previous 2.5% projected in March, principally due to higher fiscal revenues, Velarde said. The bank projected annual inflation of 6.4% for 2022 and 2.5% inflation for 2023. Velarde said the bank revised its growth projections downward because of a deceleration of local production due to persistent conflicts in Peru's critical mining sector, in addition to the impact of the Russia-Ukraine war. Read more.