Peru's Economic Growth Falls Short Amid Mining Sector Challenges

Peru's economy experienced a 4.52% growth in June, slightly below the forecasted 4.70%. The nation's mining and energy sectors contributed minimally, while construction and agriculture reported significant increases. Challenges include informal mining protests and new tariffs impacting copper exports, a critical component of Peru's economy.

Peru's economic growth in June reached 4.52%, undercutting expert predictions of 4.70%, as reported by INEI statistics. Despite wide sectoral growth, the downturn was noteworthy.

Notably, the mining and energy sector, a crucial pillar for the world's third-largest copper producer, grew by a mere 1.01% year-over-year. Fishing and farming showed progress, while foreign markets were jolted by a new U.S. tariff imposing a 50% levy on semi-finished copper goods.

Meanwhile, the construction and commerce sectors enjoyed substantial growth, marking a steady recovery under President Dina Boluarte. However, informal miner protests along vital copper transport routes signal potential obstacles ahead. The central bank projects a 3.1% economic growth in 2023, easing to 2.9% by 2026.

(With inputs from agencies.)