According to the president of the issuing body, Julio Velarde, there could be an upward bias in the next projection of GDP growth.

Peru's Central Reserve Bank (BCR) today projected economic growth of 3.1% in 2024 and 3% next year, maintaining its previous forecasts.

"From January to July we have grown 2.8%, that is, we are really approaching the estimated growth we have of 3.1% (for this year)," said the president of the BCR, Julio Velarde, during the presentation of the latest Inflation Report.

"The bias is probably upward, but we will see that in the next Inflation Report (in December) when we have more concrete data for September and October. For next year we maintain the estimated growth of 3%," he added.

The president of the BCR presented the projections for primary GDP growth (2.8%) and non-primary GDP (3.1%) for this year; while in 2025 they will be the following: primary GDP (3%) and non-primary GDP (3%).

He indicated that the recovery of the gross domestic product (GDP) in 2024 will be supported by the favorable impact of the normalization of climatic conditions on the agricultural, fishing and associated manufacturing sectors, as well as by the advance of private spending in the remainder of the year, which will boost non-primary sectors.

“By economic sector, compared to the previous Inflation Report, Fishing is growing somewhat more, and in Manufacturing, strong growth occurred in July,” said Julio Velarde.

Business expectations

The BCR official stressed that businessmen's expectations regarding the economy and their sector are in the optimistic range.

"Expectations have been positive, not dramatic, but we see a gradual, slight improvement, month after month," he said.

Julio Velarde stressed that all business expectations indices showed a better result in August of this year.

"Expectations for the sector where the surveyed company is located are somewhat better and have also continued to improve in recent months," he said.