Growth Expected to Remain Robust in Peru in 2024, 2025

• Fitch Solutions forecasts that Peru’s economy will grow by 2.8% in 2024 and 2.5% in 2025 after experiencing a contraction in 2023.
• Monthly growth has remained strong through the first half of the year, with an average of 2.5% for the first six months, compared to the 0.6% contraction last year.
• Fitch expects exports, especially of mined products, to remain strong, and private consumption to recover on the back of lower interest rates. These dynamics are also set to continue into 2025.
• Since 2024, inflation has remained moderate. Given this, Fitch now expects the Banco Central de Reserva del Peru (BCRP- Central Bank of Peru) to move some cuts to 2025 as opposed to making them this year. These lower interest rates will support further credit growth and consumption in 2025.
• Risks to Fitch’s medium-term growth forecast are skewed to the upside as recovering investment flows may add a stronger tailwind to mining and other sectors, beyond Fitch’s current expectations.

(Source: Fitch Solutions)