Peru’s Economy Grows 3.1% in 2024, Looks Ahead with Optimism

The World Bank reports Peru’s economy grew by 3.1% in 2024. This growth stems from increased domestic consumption, strategic investments, and robust exports.

The country’s economic recovery marks a significant shift from the challenges faced in 2023. Peru maintains an optimistic outlook for 2025, expecting similar growth supported by ongoing infrastructure projects and stable macroeconomic policies.

Juan Carlos Ocampo, an economist at Universidad Privada del Norte, highlights the positive impact of key decisions. He notes that prioritizing strategic public-private projects has boosted the economy.

The new Port of Chancay and the expansion of Jorge Chávez International Airport will diversify trade flows. These developments position Peru as a regional logistics hub, attracting long-term investments and potentially increasing export capacity by 20%.

Several factors contributed to Peru’s economic recovery in 2024. The withdrawal of pension funds injected liquidity into the domestic market. Progress on flagship projects, such as Lima’s Metro Line 2, created jobs and laid foundations for future competitiveness.

The mining sector played a crucial role due to higher copper prices and increased production. This positioned Peru as a key player in the global minerals market. The fishing sector grew by over 20% annually, benefiting from favorable weather conditions.

Peru’s Economic Outlook

Ocampo explains that the mining sector significantly boosted international reserves in 2024. This created a trade surplus, stabilizing the exchange rate and inflation.

He emphasizes the need to diversify income sources to reduce dependence on high mineral prices. The challenge lies in efficiently managing natural resources while developing other economic sectors.

Looking ahead to 2025, Peru has opportunities to consolidate its development. Key projects include sanitation works in Puno, Callao, and Piura. Agricultural development in Majes, Siguas, and Chavimochic will boost regional economies.

Infrastructure expansion in Amazonas and Loreto will further stimulate economic growth. The Port of Chancay and Jorge Chávez Airport expansion will establish Peru as a strategic South American hub.

Sectors like hydrocarbons, agriculture, and fishing are expected to lead supply-side growth. Private and public investments will drive demand. Ocampo stresses the importance of balancing economic dynamism with fiscal sustainability in 2025.

He warns against populist measures in the pre-election environment that could destabilize the public budget. New trade agreements could increase the GDP share of agroexports and manufacturing by up to 10% in the medium term.