Peru's Central Bank Upgrades Economic Growth Forecast Amid Primary Sector Expansion

Peru's central bank has increased its economic growth forecast for 2023 to 3.1%, driven by primary sector expansion, particularly in fishing. The uplift reverses last year's recession caused by El Nino and social unrest. Public investment growth is now projected at 12%, while private investment and inflation estimates remain unchanged.

Peru's central bank on Friday slightly raised its economic growth forecast for the Andean nation this year to 3.1%, compared to 3.0% previously.

The monetary authority's chief, Julio Velarde, said in a presentation accompanying the fresh estimate that the larger economic growth would be due to expansion in the primary sector, particularly in fishing. The positive growth logged this year would reverse a slight recession in Peru seen last year due to the effects of weather phenomenon El Nino and lingering social unrest.

The central bank hiked its estimate for public investment this year, now forecasting annual growth of 12% compared to a previous estimate of 4%. Meanwhile it held previous estimates for this year's private investment at 2.3% and inflation at 2.2%.

It also held its estimate for GDP growth in 2025 at 3.0%. The monetary body projected the fiscal deficit at 2.8% of gross domestic product (GDP) this year and at 1.6% of GDP next year.

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