Peru’s GDP growth misses forecasts in December as unrest simmers
2023.02.15 11:50
© Reuters. FILE PHOTO: A man sells groceries at a stand at Surco market in Lima, Peru August 31, 2018. REUTERS/Mariana Bazo
LIMA (Reuters) – Peru’s economy slowed down for the second month in a row, missing forecasts for the last month of 2022, figures from the national statistics institute showed on Wednesday, as the country faces a wave of social unrest that began early December.
The Andean nation’s gross domestic product (GDP) rose 0.86% year-on-year in the month, while economists expected a 1.25% expansion, according to the median forecast in a Reuters poll.
Protests have rocked the world’s No. 2 producing country, since the December 7 removal and arrest of former President Pedro Castillo. The clashes between protesters and security forces have blocked roads and left dozens dead.
The central bank’s economic studies unit last week said the unrest had likely impacted the country’s economy and inflation, as it hit both the country’s infrastructure and transport networks.
With the latest figure, Peru’s 2022 economic growth lands at 2.68%, a sharp decline from the 13.61% jump the country – historically one Latin America’s fastest-growing economies – recorded in 2021.
The 2021 figure, Peru’s highest on record, was driven by a rapid recovery from the coronavirus pandemic-driven downturn.
