Business indicators in Peru decline in May due to economic uncertainty.

The indicators of business expectations regarding the economy in Peru have experienced a setback during the month of May, as revealed by the results of the macroeconomic expectations survey conducted by the Central Reserve Bank of Peru (BCRP). These data reflect the uncertainty and challenges that businesses face in a context of changes and volatility in the national and international economic environment. In the case of short-term economic expectations, the indicator showed a decrease from 50 to 48 points compared to the previous month. Similarly, long-term expectations were also affected, dropping from 60 to 55 points. These figures reflect a less optimistic perception by entrepreneurs regarding the evolution of the economy in the coming months. Despite this outlook, the BCRP noted that all 12-month expectation indicators remain in the range considered optimistic, i.e., above 50 points. This suggests that, although there is a moderation in expectations, companies still maintain a certain level of confidence in the medium-term economic performance. On the other hand, the survey results also showed improvements in expectations regarding the surveyed company's sector, although a deterioration in investment expectations was observed. These data indicate a heterogeneous perception among companies, with greater confidence in their own sector but caution regarding investment and business expansion. Furthermore, of the 18 indicators evaluated, 12 are in the optimistic range, suggesting that there are still areas of the Peruvian economy generating favorable expectations among entrepreneurs. However, uncertainty and economic volatility at the national and international levels are impacting the overall perception of the business environment. Regarding the Gross Domestic Product (GDP) growth projections for this year, economic analysts maintain an expectation of 2.7% growth, similar to previous months. In the case of financial companies, a slight improvement in their estimates was observed, placing growth at 2.7%, above the previously projected 2.6%. Non-financial companies, on the other hand, maintained their growth forecast at 2.5% for the current year. This panorama reflects the caution and prudence with which both analysts and companies are evaluating the country's economic performance in a context of challenges and risks. Political uncertainty, insecurity, and tensions at the national and international levels are impacting companies' decision-making, resulting in a moderation of economic expectations and projections. In summary, the decline in business expectations regarding the economy in Peru during the month of May highlights the challenges and complexity of the current economic environment. While there are areas of optimism and favorable projections, uncertainty and volatility continue to be determining factors influencing the perception and decisions of companies in a context of constant changes and challenges.