Peru’s economy is expected to grow 4% in January 2025, following a recovery from a 0.4% contraction in 2023. The central bank chief noted that U.S. tariffs may have limited impact, with mining remaining strong. The interest rate is stable at 4.75%, indicating a focus on inflation management.
Peru’s economy is projected to have grown by approximately 4% in January, as reported by Adrian Armas, chief economist of the central bank. This growth is aligned with analysts’ expectations and precedes the forthcoming government announcement on the monthly economic data. After experiencing a recession in 2023 with a contraction of 0.4%, Peru’s economy rebounded with a growth of 3.3% last year, and the government aims for an approximate 4% growth by the close of 2025, positioning it among the fastest-growing economies in the region.
Regarding the prospective effects of U.S. tariffs, Armas indicated that the impact on the Peruvian economy would likely be minimal. However, sectors such as manufacturing and agriculture could experience more volatility. With respect to Peru’s vital mining industry, particularly concerning the supply of red metal, Armas suggested that the impact of potential tariffs would be limited since exporters could redirect commodities to other markets.
Armas further highlighted the concern surrounding the unpredictability of the United States’ tariff policies, which is contributing to heightened global uncertainties. He stated, “There is fear about the future of the North American economy.” This commentary follows the central bank’s decision to maintain the key interest rate at 4.75%, which has remained stable since the beginning of the year, as inflation metrics are currently within the target range.
In summary, Peru’s economy is recovering with an estimated growth of 4% in January, following previous contractions. While U.S. tariffs may pose limited risks, the agricultural and manufacturing sectors could face uncertainties. The mining industry appears resilient, and the central bank’s interest rate remains stable due to controlled inflation. Overall, Peru is set to emerge as one of the leading economies in the region by 2025.
Original Source: money.usnews.com
