HomeTop StoriesThe Peruvian economy grows in February, exceeding almost all forecasts

The Peruvian economy grows in February, exceeding almost all forecasts

(Bloomberg) — Peru’s economy grew more than expected in February from a year earlier, as the country emerges from its second-worst recession in 33 years.

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The economy grew 2.85% from the same month a year earlier, the national statistics agency said Monday, far higher than the average estimate of 2.1% growth among 10 economists surveyed by Bloomberg. The figure beat all but one prediction. Production grew by 1.19% compared to a month earlier.

The Peruvian economy has now recorded two consecutive months of growth, both on an annual and monthly basis. The government and central bank expect the economy to potentially recover and reach 3% growth in 2024 after a rare contraction last year due to political crises and bad weather.

On an annual basis, growth in February was boosted by base effects, as Peru suffered historic anti-government protests that disrupted the economy in the same month last year. Mining output grew 16% this month compared to a year earlier, INEI said.

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The central bank surprisingly cut interest rates this month, defying inflation rates that have so far failed to cool to the desired target range. But the bank now says it is confident that inflation can reach 2% in the coming months.

Peruvian President Dina Boluarte is still dealing with the fallout from a crisis sparked by her use of expensive Rolex watches, prompting prosecutors to launch an investigation into illegal enrichment.

Boluarte has denied any wrongdoing and said the jewelry was a loan from a political ally. A poll published this weekend found that 92% of Peruvians do not believe the watches were a loan, while Boluarte’s popularity has fallen to 7%.

–With help from Rafael Gayol.

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