Perus Central Reserve Bank has slightly lowered its prediction for how much the countrys economy will grow in 2025.
The new forecast is 3.1%, down from the earlier estimate of 3.2%.This change comes mainly because Perus important mining sector, especially metal mining, is not expected to do as well as previously thought.Mining is a big part of Perus economy.
It brings in a lot of money from exports, especially copper, gold, and zinc.The Central Bank now expects metal mining to grow by just 0.3% in 2025, much less than the 2% they predicted before.Hydrocarbons, like oil and gas, are also expected to grow less, with their forecast dropping from 5.5% to 4%.Despite these lower numbers, other parts of Perus economy are doing better.Perus Economy Slows as Mining Struggles, Central Bank Lowers Growth ForecastIn the first part of 2025, the countrys economy grew by 3.9%.
Manufacturing, services, and mining led this growth.People and businesses also spent more, and exports of goods like grapes, natural gas, and fishmeal increased.Copper remains Perus top export.
The government expects copper production to reach 2.8 million metric tons in 2025, a small increase from last year.Perus Economy Slows as Mining Struggles, Central Bank Lowers Growth ForecastInvestment in mining is expected to be about $4.8 billion this year.
However, the sector faces problems such as illegal mining and local disputes, which sometimes stop production.Inflation is low and stable, at around 1.65% in April 2025, which is within the central banks target.The countrys currency has become stronger, and copper export earnings have gone up by about 1215% compared to last year.Perus government also expects to reduce its budget deficit to 2.4% of GDP in 2025.Still, there are risks.
Prices for metals can change quickly, and economic growth in countries that buy Perus exports, like China, has slowed.Perus Mining Exports Set New Pace, But Old Challenges RemainPolitical and social problems in Peru, especially near mining areas, also worry investors.The government hopes to attract $16 billion in private investment by 2026, focusing on new infrastructure and mining projects.
This could help the economy grow in the future.Perus economy has strengths, like stable prices and strong exports, but it also faces real challenges.The countrys success depends on how well it manages its mining sector and deals with both local and global risks.