Economy & Business - April 2025

PERU | IMF praise. On 27 March, the International Monetary Fund (IMF) highlighted Peru’s economic recovery in 2024, with GDP expanding 3.3%. Peru’s economy contracted 0.6% in 2023, with the IMF attributing this to the “social unrest at the beginning of the year and climate anomalies”. The IMF said growth in 2024 was supported by “a robust recovery in primary sectors, rising private consumption, and strong public investment”. The IMF expects growth to moderate to 2.9% in 2025 amid “global policy uncertainty and pre-electoral tensions” ahead of April 2026 general elections. The IMF also highlighted that inflation, which was running at 1.50% in annual terms in February, was “firmly within the target band” of 1-3%. While noting that international reserves remained at a “comfortable level” of about 27% of GDP, the IMF highlighted that the fiscal deficit rose to 3.5% of GDP, far above the revised fiscal rule deficit target of 2.8% of GDP, due to “lower tax collection and higher public investment execution”.