INSUBCONTINENT EXCLUSIVE:
Fishing is expected to drop by 27%
These protests disrupted sales and production like COVID-19 lockdowns did.Peru Cuts 2023 Growth Forecast to 0.9%
(Photo Internet reproduction)Domestic demand is down
Manufacturing is likely to fall by 3.5%
However, inflation has eased to 5.58% in August, from 8.81% in June.Velarde expects it to keep dropping
The year-end target is between 1% and 3%.Peru has one of the lowest inflation rates in Latin America
For comparison, Chile is at 5.2% and Brazil at 6.3%.Velarde warns food prices could rise in 2024 due to social conflicts and natural
events.The Central Bank also cut its key interest rate
The rate had been stable for seven months.Peru BackgroundPeru has faced economic challenges for years
In the past, growth was fueled by mining
But reliance on minerals made the economy vulnerable.Economic diversification has been slow
Agriculture and fishing are key sectors but face issues
Several ex-presidents have faced legal issues
Public trust in institutions remains low.Protests and political instability are common
These factors add to economic uncertainty
Yet, natural resources and tourism offer future growth potential.
