LatinNews Daily - 26 August 2022

In brief: Peru gov’t revises down growth forecast

* Peru’s economy & finance ministry (MEF) has reduced its GDP growth forecast for Peru this year to 3.3%, down from 3.5% back in April. According to the MEF, the economy has been affected by temporary supply shocks that have had an impact on the performance of primary sectors in the first half of the year, while external conditions are unfavourable due to the slowdown in external demand, the adjustment of commodity prices, and inflationary pressures. However, the MEF stated that there are factors that will help counteract the negative effects in 2022 and sustain economic growth in 2023. These include: 1) the dissipation of social conflicts in the mining sector, which will result in greater copper production, thanks to the return to normal operations at Las Bambas mining project and the start of operations at Quellaveco copper mine as of the second half of 2022; 2) the implementation of measures (as yet unveiled) to boost private and public spending, and investor confidence; 3) increased dynamism in economic sectors that were badly affected by the coronavirus (Covid-19) pandemic, such as trade, hospitality and transportation; and 4) the recovery of domestic demand driven by the stimulation of investment and the resilience of private consumption. Yesterday MEF Minister Kurt Burneo was cited by the media as saying that Peru’s growth was “insufficient”

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