Peru cuts GDP growth estimate to 3.3 pct in 2022

LIMA, Aug. 25 (Xinhua) -- Peru on Thursday cut the country's gross domestic product (GDP) growth projection from 3.6 percent to 3.3 percent in 2022, the Ministry of Economy and Finance said.

In the Multiannual Macroeconomic 2023-2026 report, the ministry explained that the Peruvian economy was mostly affected by "transitory supply shocks," which influenced the primary sector's performance in the first half of the year.

The economy was also impacted by unfavorable external conditions due to a slowdown in demand, raw material price adjustments and inflationary pressures.

Despite the downward projection, the report detailed that there were still factors that could help "counteract" the negative effects this year and sustain economic growth in 2023.

These factors included diminished social conflict in the mining sector, the implementation of measures to boost private and public expenditure, and a greater dynamic of the economic activity affected by the COVID-19 pandemic.

The ministry highlighted that the 2022 growth forecast was based on the resilience of domestic demand and a higher export volume, in addition to measures to boost the economy's productivity and competitiveness.

The administration also maintained other downward projections, including exports that fell from 7.8 percent to 4.8 percent and imports that went from 4.7 percent to 3.4 percent.

Meanwhile, the private investment forecast remained at neutral growth, while public investment fell from 11 percent to 8.5 percent.