Political crisis will weigh on Peru's economic outlook

Significance

Growth was lower than originally anticipated, with a pronounced slowdown in the last quarter. The post-COVID-19 rebound in 2021 appears to have lost momentum. Export performance benefited from the high price of minerals, especially gold and copper, achieved in early 2022. Peru’s credit rating remains positive and the exchange rate fairly stable.

Impacts

• Despite warnings of downgrades, Peru’s credit rating should remain strong.
• Mining production will grow as Quellaveco comes fully on stream.
• Tourism will pick up as violent protest recedes.