Peru’s economy is projected to grow by 4% in January, following a recovery from a recession. Chief economist Adrian Armas suggests the impact of U.S. tariffs will be limited, particularly for mining. The central bank maintains a 4.75% interest rate as inflation remains stable.
According to Adrian Armas, chief economist of Peru’s central bank, the economy is projected to have expanded by approximately 4% in January. This projection aligns with analysts’ forecasts and precedes the government’s official release of the monthly economic figure. Following a recession that saw a contraction of 0.4% in 2023, Peru’s economy rebounded with a growth of 3.3% last year, with the government anticipating a growth rate of about 4% by the end of 2025, positioning Peru among the fastest-growing economies in the region.
Regarding the potential impact of U.S. tariffs, Armas indicated that the overall effect on Peru’s economy would likely be minimal, although there may be uncertainties particularly affecting the manufacturing and agricultural sectors. He reassured that potential tariffs would not severely impact Peru’s mining sector, especially regarding exports of red metal, as these can be redirected to other global markets.
Armas acknowledged that the unpredictable nature of U.S. tariff announcements contributes to an increasingly volatile global economic landscape. He stated, “There is fear about the future of the North American economy.” Furthermore, following the central bank’s recent meeting, the key interest rate has been maintained at 4.75% since the beginning of the year, which is viewed as a neutral position while inflation remains within the desired targets.
In summary, Peru’s economy is recovering post-recession, with a 4% growth forecast for January, as stated by the central bank’s chief economist. The impact of U.S. tariffs appears limited, particularly for the mining sector. The central bank’s decision to hold the interest rate steady at 4.75% reflects a stable economic outlook amidst ongoing global uncertainties.
Original Source: money.usnews.com
