Peruvian government will release today November’s GDP growth rate. After the political turmoil of 2020, the country experienced one of
Peruvian government will release today November’s GDP growth rate.
After the political turmoil of 2020, the country experienced one of its deepest recessions in decades. The economy shrank by 3.79% in October, following a 6.95% decline the previous month. Nevertheless, according to the Economy Ministry, Peru’s economy is expected to grow an annual average of 5.1% between 2021 and 2026. In addition, the World Bank forecasts a growth of 7.6% in the national GDP for 2021, while projecting one of at least 4.5% by 2022.
Expect the economy to start growing amid the start of vaccination, stabilization of prices of main commodities due to the recovery of the world economic activity and growth in the metallic mining sector. In the medium-term, April’s presidential and legislative elections may influence the country’s economic performance. The policy priorities of the new administration will likely determine the path to recovery, which will be subject to uncertainties such as political division, social discontent and the government’s effectiveness. At the same time, continued strengthening of public finances and economic reforms to improve productivity and reduce unemployment will continue to be a key concern for improving macroeconomic health.
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