Peru Launches Economic Package Amid Worries Of Slowing Growth

• Peru's finance ministry on Thursday unveiled an economic package it says can help lift the economy at times of a global slowdown and falling copper prices, which are key to the country's economy.
• Finance Minister Kurt Burneo said the measures could boost gross domestic product growth by 0.6% this year and by 0.8% in 2023.
• The announcement comes just weeks after Peru's finance ministry announced economic growth projections that exceeded analysts’ consensus. The ministry expects GDP growth of 3.3% this year, while analysts polled by Refinitiv forecast 2.6%. While the sovereign is expected to grow, economic and fiscal performance will be impacted by the fall in copper prices.  Peru is the world's Number 2 copper producer and falling prices of the red metal are hitting tax coffers after record revenue in 2021.
• The cost of the incentive package, much of which still needs to be approved by Congress, totals 3 billion soles, Burneo said. The package includes incentives for private investors, including in mining exploration, as well as heavier public spending.
• Peruvian President Pedro Castillo came to office last year with a far-left platform that spooked investors and sent the country's sol currency to record lows. However, he has since moderated his stance and picked moderates for the key finance ministry in a bid to maintain trust with investors.

(Source: Reuters)