Peru

The Central Reserve Bank of Peru on Friday slightly reduced its economic growth projection for 2023 to 2.9% from 3.0%, according to a report published by the central bank, Reuters reported. Annual inflation in the copper-rich South American country is seen reaching 8.2% in 2022 before declining to 3% in 2023, the central bank said. It sees a 2022 fiscal deficit of 1.6% of gross domestic product, compared to a previous forecast of 1.9%, the report noted.

Peru's economy expanded by 1.66% in September compared with the same month a year earlier, figures from the national statistics institute (INEI) showed on Tuesday, a slight dip from an increase of 1.68% in August, Reuters reported. INEI said growth in the world's No. 2 copper producer was driven by most sectors of the economy in September, pointing to gains in construction, transportation, hotels and restaurants, commerce, agriculture, power utilities and other services.

Peru's government proposed on Friday "a new approach" for mining companies to end social gaps and avoid conflicts in the sector, a measure taken after several conflicts in the country in recent months, Reuters reported. Prime Minister Anibal Torres said during a conference between executives of large mining firms that the new "attitude" aimed to promote local and foreign investment. He added that the government of leftist President Pedro Castillo respects private initiative and wants to promote mining activity.

Peru's finance ministry on Thursday unveiled an economic package it says can help lift the economy at times of a global slowdown and falling copper prices, which are key to the country's economy, Reuters reported. Finance Minister Kurt Burneo said the measures could boost gross domestic product growth by 0.6% this year and by 0.8% in 2023. The announcement comes just weeks after Peru's finance ministry announced economic growth projections that exceeded analysts consensus. The ministry expects GDP growth of 3.3% this year, while analysts polled by Refinitiv forecasts 2.6%.

Since 2011, Peruvians have lived under seven presidents and seen four ex-leaders detained or wanted on corruption allegations. Yet, in the same period Peru has held onto the unlikely title of the fastest growing major economy in Latin America, Reuters reported. That period of standout growth is set to end this year, an analysis of World Bank data and International Monetary Fund forecasts shows, with Colombia overtaking Peru. Slowing growth at the world's No.

Peru's central bank expects monthly inflation in July to be lower than June's rate of 1.19%, a bank official said on Friday, offering some optimism after annual inflation rates hit a two-decade high in the copper-producing Andean nation, Reuters reported. Adrian Armas, the bank's manager of economic studies, added he expects monthly consumer prices to ease further in August, but noted that the impact of inflation would continue to be felt.

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.

Peru’s foreign debt has touched record lows as a wave of social unrest amid quickening inflation upends a market once famed for its resilience to near-perpetual political crisis, Bloomberg News reported. Government bonds due in 2031 have tumbled 5.5 cents since early last week to trade at 89 cents on the dollar on Tuesday, lingering near an all-time low. The extra yield investors demand to hold Peru’s bonds over U.S. Treasuries, meantime, is at 194 basis points, versus just 165 a week prior, according to JPMorgan Chase & Co. data.

Peru's economy is expected to have stayed above pre-pandemic levels in December and January, due to the recovery of internal demand and a record in exports, despite lower mining output after recurring social conflicts, the central bank said Friday, Reuters reported. "The economy is recovering, the output gap is closing, but it would still be below its potential," said Adrián Armas, manager of economic studies at the Central Bank, citing the bank's December and January advance indicator reports.