In May, Peru’s economy showed signs of contraction after stagnant growth, contradicting earlier predictions of a gradual recovery following intense political uncertainty.
Peru’s economy shrank by 1.43% compared to the previous year, according to the national statistics agency INEI.
This figure, the largest recorded since the peak of the pandemic in 2021, did not align with growth projections from all three analysts surveyed by Bloomberg.
The economy demonstrated some growth during the last month, albeit at a rate slower than the least optimistic forecasts.
From January to May, the economy contracted by 0.49%, reported by INEI.
A key factor in this economic shrinkage was a 70% drop in the world’s largest fishmeal industry.
This was mainly caused by the warming waters induced by the El Nino phenomenon.
These economic challenges could increase the pressure on President Dina Boluarte’s government and the finance ministry, who maintain that economic recovery is in progress.
They project a 2.5% economic growth this year, a goal that now appears increasingly difficult to achieve.
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