Peru’s economy is expected to grow 4% in January according to the central bank’s estimates. The nation is emerging from a recession with growth expected to stabilize. Despite concerns over U.S. tariffs, the overall impacts on Peru’s economy are foreseen as limited, particularly in key sectors such as mining.
Peru’s central bank anticipates the economy to grow approximately 4% in January, as noted by Chief Economist Adrian Armas. This growth aligns with analysts’ expectations and precedes the government’s monthly economic figure release. Following a recession in 2023 that saw a contraction of 0.4%, Peru’s economy grew by 3.3% last year and is projected to maintain robust growth through 2025, positioning it as one of the fastest-growing economies in South America.
When inquired about the potential influence of U.S. tariffs, Mr. Armas indicated that such effects on Peru’s economy would likely be minor, although some uncertainty may affect the manufacturing and agricultural sectors. Regarding the vital mining sector, he mentioned that potential tariffs would probably not significantly impact Peru’s exports of copper, as these commodities can be sold in alternative markets.
However, Armas acknowledged that fluctuations in U.S. tariffs are generating a more unpredictable global economic environment. He expressed concerns over future uncertainties regarding the North American economy. Additionally, after a recent central bank meeting, where the key interest rate was maintained at 4.75%, Armas defined this rate as being in “neutral territory” within the preceding inflation targets set by the bank.
In summary, Peru’s economy is projected to grow by 4% in January, recovering from a prior recession while remaining resilient against potential external tariff impacts. The central bank maintains a stable interest rate, and key sectors, particularly mining, are expected to adapt despite uncertainties. This performance secures Peru’s position among the fastest-growing economies in the region, showcasing a positive economic outlook.
Original Source: money.usnews.com
