Peru’s economy is estimated to have grown 4% in January, recovering from a recession in 2023. The government expects continued growth, reaching around 4% by 2025. U.S. tariffs are predicted to have limited effects, particularly on manufacturing and agriculture, while the central bank maintains interest rates at 4.75%.
Peru’s economy is projected to have grown by approximately 4% in January, as stated by Chief Economist Adrian Armas from the central bank. This figure aligns with analysts’ expectations and is set to be officially confirmed by the government soon. The nation is recovering from a recession that occurred in 2023, which saw a contraction of 0.4%. Following that, the economy grew by 3.3% last year, and the government anticipates a growth rate around 4% by the end of 2025.
In terms of potential U.S. tariffs, Armas suggested that the impact on the Peruvian economy would likely be minimal. However, the manufacturing and agricultural sectors might face some uncertainty due to tariff changes. Concerning the mining sector, which is pivotal for Peru’s economy, Armas mentioned that tariffs may have limited effects, as exporters could redirect their commodities, like copper, to other markets.
Additionally, he highlighted the overarching uncertainty tied to the unpredictability of U.S. tariff policies, contributing to a more volatile global environment. Armas expressed concerns about the future stability of the North American economy, emphasizing the impact on global trade dynamics. In context, the central bank has maintained its key interest rate at 4.75% since the beginning of the year, considering this level as neutral, especially with inflation rates remaining steady within the targeted range.
The article outlines Peru’s expected economic growth of 4% for January, following a recovery from a previous recession. It also addresses the limited potential impact of U.S. tariffs on Peru’s economy while noting the concerns regarding market volatility. Furthermore, the stability in the central bank’s key interest rate reflects the management of inflation as part of Peru’s economic strategy moving forward.
Original Source: money.usnews.com
