Peru’s economy is projected to grow by 4% in 2025, making it the second-fastest growing economy in Latin America, according to a senior official from the country’s government. This growth comes as the country continues to recover from a recent recession, with inflation expected to remain stable at around 2% for the year.
Economy Minister Jose Salardi shared the forecast during a press conference on Monday, noting that the positive economic outlook is supported by high prices for Peru’s key mineral exports, such as copper and gold. The government, led by President Dina Boluarte, is also working to reduce regulatory barriers to attract more investment, further boosting the economy.
While Peru has long been one of Latin America’s strongest economic performers, recent years have seen growth slow due to social unrest, especially within the country’s vital mining sector, amid ongoing political instability. Despite these challenges, the country is now showing signs of recovery.
Salardi emphasized that Peru’s expected 4% growth this year would be surpassed only by Argentina’s projected expansion, making it one of the top performers in the region.
Regarding inflation, the Ministry of Economy is forecasting a rate of 2% for the year, which closely aligns with the country’s 2024 inflation rate of 1.97%. This stability in inflation is seen as a positive sign for the economy, as it helps maintain purchasing power and consumer confidence.
The government is also focused on fiscal discipline, aiming to reduce the budget deficit in accordance with established fiscal rules. Peru’s debt-to-GDP ratio currently stands at around 33%, and the government expects it to decrease in the coming years, though further details were not provided.
Looking ahead to 2025, both the government and the central bank remain optimistic about Peru’s economic prospects, with an expectation of fewer inflationary pressures and increased investment. This recovery comes as the country seeks to regain its position as one of Latin America’s top economic performers.
