Peru's economy is projected to grow by 4% this year, making it the second-fastest growing economy in Latin America, according to a senior official on Monday. Inflation is expected to remain stable at around 2%.
After a period of recession, positive prospects are anticipated for Peru in 2025 under President Dina Boluarte's government, with predictions of reduced inflationary pressures and increased investment.
While Peru has historically been a leading economy in Latin America, recent years have seen a decrease in growth due to social unrest impacting the mining sector amid political instability.
Economy Minister Jose Salardi highlighted the outlook of elevated copper and gold prices, Peru's major mineral exports, coupled with efforts to streamline regulations to attract more investments.
Salardi mentioned that Peru's economic growth for the year would be outpaced only by Argentina in Latin America.
The Economy Ministry also forecasts a 2% inflation rate for the year, following a 2024 figure of 1.97%.
Furthermore, Salardi aims to decrease the government's budget deficit in accordance with fiscal regulations.
Currently, Peru's debt-to-GDP ratio stands at approximately 33%, with expectations for it to decrease further, as stated by the minister without elaborating.