Peru’s economy exceeded expectations in February with a growth of 2.85% compared to the same month the previous year. This positive growth comes as the country recovers from its second-worst recession in 33 years. The national statistics agency reported these figures on Monday, surpassing the median estimate of 2.1% growth from a survey of 10 economists conducted by Bloomberg. Only one forecasted a higher growth rate. Additionally, output expanded by 1.19% from the previous month.
The mining sector played a significant role in driving the February growth, with a 16% increase in output compared to the previous year, as reported by INEI. Despite inflation figures remaining high, the central bank unexpectedly cut interest rates this month, expressing confidence that inflation will reach the target range of 2% in the coming months.
Peru has now experienced two consecutive months of growth on an annual and month-on-month basis. The government and central bank are optimistic about the possibility of the economy rebounding to achieve 3% growth in 2024 after facing a rare contraction last year due to political crises and adverse weather conditions. President Dina Boluarte is currently facing backlash following controversy surrounding her use of expensive Rolex watches, leading to an investigation for illegal enrichment. Boluarte denies any wrongdoing and claims the jewelry were a loan from a political ally
