The Central Reserve Bank of Peru (BCR) has revised its forecast for private investments in the country, expecting a decrease of 2.5% by the end of 2023.
“Investments in mining will decrease by 18.9%, and investments outside mining will drop by 0.5%.
Therefore, investments will decrease by 2.5% this year,” said BCR President Julio Velarde.
BCR also revised Peru’s growth forecast 2023 from 2.6% to 2.2%, mainly due to the protests and weather issues in Q1.
The agricultural sector and the manufacturing industry are most affected by this downward revision.
In April, Peru’s GDP only grew by 0.31%, impacted primarily by the 14% decline in the agricultural sector.
BCR had already reduced its GDP forecast for 2023 from 2.9% to 2.6% and further down to 2.2% due to social conflicts and climate anomalies caused by El Niño.