Central Banks
Peru’s Central Bank Now Sees Economy Shrinking After Big Forecast Move
- GDP will shrink by 0.5% in 2023, expand 3% next year
- El Nino, protests and weak investment leading to contraction
Julio Velarde
Photographer: Samuel Corum/BloombergThis article is for subscribers only.
Peru central bank chief Julio Velarde said the nation’s gross domestic product will contract this year, marking the first time a government official publicly acknowledges the degree of the economic downturn.
The central bank said GDP will contract 0.5% in 2023, compared to September’s forecast for 0.9% growth, a virtually unattainable projection considering the economy has now shrunk for six straight months. Velarde lowered his 2023 inflation estimate to 3.1% from 3.8% on easing food prices.