Peru's Financial Forecast: Central Bank Raises Economic Projections Amid Political Shift

Peru's central bank has raised its economic growth forecast slightly to 3.0% for 2026, taking into account upcoming presidential elections. The country is recovering from a 2023 recession. Inflation is projected to rise, while fiscal deficit and trade balance estimates have improved due to better mineral prices.

Peru's central bank has revised its economic growth forecast for 2026 to 3.0%, a slight increase from the earlier 2.9%, while maintaining the same projection for 2027. This adjustment reflects anticipated impacts from the presidential elections in April 2026, the bank reported on Friday.

The growth prediction for this year has also been raised to 3.3% from the previous 3.2% as Peru's economy continues to rebound following a recession in 2023 caused by political instability, social unrest, and adverse weather conditions.

On the inflation front, the bank expects a rate of 1.5% by year's end, rising to 2.0% in 2024. Interest rates remain steady at 4.25%. The trade surplus is projected to hit a record $32.89 billion this year, attributed to better mineral prices and increased agricultural and fishery exports.

(With inputs from agencies.)