The Peruvian economy fell 0.6% in 2023, its second worst contraction since 1990 after that caused by the pandemic. The recovery will be seen until 2025, analysts estimate.
The country, accustomed to growing above the average for the Latin American region, was hit by four strong blows. “There is no economy that can withstand what happened to us,” says Hugo Perea, chief economist for Peru at BBVA. The Central Reserve Bank of Peru has had to keep the reference interest rate high as a measure to contain inflation.