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The Ministry of Economy and Finance indicates that the Peruvian economy will have growth of about 2% in the first quarter of the year amid protests, but so far no projections clear by the end of 2023, how much will GDP grow?
The Peruvian economy will grow by just 1.9% in 2023, according to a report by Moody’s Analytics, a company responsible for macroeconomic analysis other than the risk assessment agency.
“At Moody’s Analytics, we forecast 1.9% growth for Peruvian economy in 2023 with a 0.4% increase in private consumption and a 1.5% decline in fixed investment,” Jesse Rogers, deputy chief economist at Moody’s Analytics, told Gestión.
The current forecast does not take into account the recent impact of the latest demonstrations, so next month it will be revised downward, i.e. economic growth will be less than 1.9%.
For his part, Vice President of Sovereign Risk Group Investor Moody’s Services, Jaime Reusche, clarifies that the rating agency’s forecast is slightly higher.
“They have a slightly lower forecast than ours, which is 2.3% for this year. We have a different idea of what impact the protests will have on economic activity,” he told RPP.
Reusche notes that this forecast already takes into account the impact of the protests, and the greater impact will depend on how long these demonstrations last.
“Already in our projection At 2.3%, we expect activity to be reduced in January due to protests. The determining factor is how long these protests last and when they dissipate, if they end in January, the damage to the economy for the year will be very limited,” he added.
A spokesman for the ratings agency indicates that they will continue to evaluate the development of the protests and the political context in the medium term before making changes to the country’s credit rating.
Source: RPP
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.