The Peruvian Institute of Economics raises its economic growth projection to 3% for this year, driven by a favorable outlook. Prospects until 2024 improve thanks to external conditions and confidence in the country. The private sector is strengthening, and continuous growth is expected, despite possible pre-election risks. The Peruvian economy shows encouraging signs, and a stable and sustained future is projected.

The Peruvian Institute of Economics (IPE) has raised its economic growth projection for Peru from 2.4% to 3% for this year, amidst a more favorable outlook for private spending. This update is based on various reasons pointing towards a scenario of greater dynamism in the national economy in the coming years. According to the IPE, economic growth prospects until 2024 have significantly improved, driven by more favorable external conditions, including the rebound in mineral prices. Additionally, the continued moderation of inflationary pressures and increased confidence among households and businesses have been highlighted as factors contributing to this upward adjustment in projections. In the first quarter of this year, the Peruvian economy showed encouraging signs by recording a 1.4% growth in Gross Domestic Product (GDP), with a notable 5.3% advance in national production. This growth was driven by factors such as improved weather conditions in agriculture and fisheries, as well as the progress of sectors linked to domestic demand, such as manufacturing, construction, trade, and services. The IPE report highlights that economic growth continued in May, supported by sectors such as agriculture and fisheries, which are recovering from the negative impacts suffered the previous year due to adverse weather conditions. It is projected that these sectors will continue to show positive performance for the remainder of the year, contributing to maintaining the favorable momentum in the economy. Regarding private spending prospects, the IPE points out that a large part of the growth projection increase for this year is explained by the improved conditions foreseen in this area. It is expected that households will experience extraordinary sources of liquidity starting from the third quarter, thanks to the release of funds from the Pension Fund Administrators (AFP) and Severance Pay (CTS), which would boost consumption and investment. For the year 2025, the IPE maintains its growth projection at 2.8%, with an environment of lower interest rates and a continued moderation of inflationary pressures. However, concerns are raised about potential risks in private spending, especially as it is a pre-election year, which could generate uncertainty among consumers and affect economic dynamism. In summary, economic prospects for Peru are more encouraging than previously anticipated, with an increase in the growth projection driven by factors such as the improvement in the environment for private spending, the rebound in mineral prices, and the confidence of households and businesses. Despite the identified risks, positive performance is expected in the coming years, which could lay the foundation for sustained and stable growth in the Peruvian economy.