Economic reality of Peru: Challenging panorama and the need for urgent measures

After the first half of the year has passed, the economic reality of Peru presents itself to us with a panorama that leaves much to be desired. As we enter the last week of June, it is evident that the speed of recovery of the national economy is insufficient to achieve significant and sustained growth. After a year marked by optimistic projections that were not fulfilled, in 2024 expectations have remained more moderate. The Gross Domestic Product (GDP) growth figures have remained within a narrow range, around 2.5% to 3%, with the Central Reserve Bank (BCR) forecasting a growth of 3.1% for the year in its latest inflation report. Despite a 5.3% growth in April, most projections remain around 3%. This growth rate close to 3% is projected not only for this year, but also for the next, according to international organizations such as the International Monetary Fund. However, this scenario represents a waste of potential for a country like Peru, which has high mineral prices, mainly copper, and a global context of relative economic stability. Private investment, key for the development of sectors such as mining, has shown a moderate growth of 2.4% this year, despite favorable conditions in the mineral market. This lack of dynamism in investment reflects a loss of competitiveness of Peru at a global level, with drops in competitiveness rankings that evidence structural weaknesses. The economic deterioration is not only a result of external factors, but is also intrinsically linked to the dysfunctionality of the Peruvian political system. The uncertainty generated by the upcoming general elections of 2026 has sown skepticism among entrepreneurs, who hesitate to make long-term investments. This lack of confidence translates into lower spending by Peruvian families, who have not yet recovered pre-pandemic consumption levels. In this scenario, it is urgent for both the Executive and the Congress to assume an active role in the economic reactivation of the country. It is imperative to lay the foundations for sustained growth above 4% starting from next year, especially considering the constant increase in poverty in the country. Political instability and the lack of effective decisions have contributed to the current economic stagnation, highlighting the need for a change in direction in government management. In conclusion, Peru is at a critical moment where concrete measures are necessary to boost growth and improve competitiveness at an international level. The current economic situation requires committed and visionary leadership that can face the present challenges and build a prosperous future for all Peruvians.