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The Central Reserve Bank (BCR) cut its economic growth forecast for 2022 from 3% to 2.9% amid political instability.
“We cut our growth forecast from 3% to 2.9% due to two factors: growth in October and the marginal effect of these protests on economic activity,” said Julio Velarde, president of BCR.
This figure is below 13.6% increase which was achieved in 2021 when the economic recovery began.
As reported, the downward revision of GDP expectations is associated with lower growth rates of core and non-commodity activities.
The data show that this year it is expected that booty it would stall as its projected growth is 0% while the fisheries sector will fall by 13.4% and the manufacturing sector will fall by 1.8%.
BCR indicates that average growth between 2022 and 2023 will be around 3%, with a weak external environment and low growth in private investment.
This year private investment it would have stagnated at 0%, that is, it would not have grown when these investments grew by 37.4% in 2021.
While public investment rose only 6%, down from the 24.9% achieved last year.
What is expected in 2023?
BCR says the Peruvian economy will grow 2.9% next year, down from a 3% growth forecast a few months ago.
Smaller growth in domestic demand is also expected due to contraction private consumptionprivate investment, public investment, export and import.
Only in the case of private investment, forecasts show that they will grow by 1%, while growth of 1.8% was previously expected.
Meanwhile, central bank he still expects public investment to grow by 0% next year.
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.