* The World Bank’s latest Global Economic Prospects report has forecast that Peru’s GDP will contract by 12% in 2020 as a result of the coronavirus (Covid-19) pademic. This is third largest predicted economic contraction in the world, behind only Belize and the Maldives, and well beyond the 7.2% average contraction predicted for Latin America.
Carlos Arteta, the chief economist behind the report, attributed Peru’s particularly grave projection to the fact that the government’s comparatively high levels of
emergency spending have not prevented it from experiencing
one of the worst outbreaks in the region, with investment in the country also expected to fall by 12% in 2020. The report forecasts 7% GDP growth for Peru in 2021, leading Arteta to suggest that it will take at least two years for the economy to recover to pre-pandemic levels.
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