BCR: PERU'S ECONOMY MIGHT EXPERIENCE RECOVERY IN NOV AND DEC 2023

Lima, December 15, 2023.- The Peruvian economy is expected to recover in November and December of this year, according to the performance of some leading indicators, predicted today by the Central Reserve Bank (BCR).
"The indicators that we are observing might suggest that there would be a moderate economic recovery in November and December," BCR Economic Studies Central Manager Adrian Armas said.

The economist revealed that payment indicators show some (type of) recovery in the services sector, as do retail indicators.

"There is good news. Let us remember that one of the factors that has contributed to lower growth in private consumption this year has been the high increase in food prices, which has been going on since last year. Fortunately, this trend has moderated," he noted.

He explained that this slowdown in inflation is largely due to reduction in the prices of some foods. Moreover, the expert said the fall in price index is helping to restore consumer confidence. 

"If the food budget, the family basket, decreases, the space opens up for other expenses," he underlined.

Afterwards, the BCR official said the negative GDP that has been recorded this year is largely due to El Niño phenomenon. Armas indicated that the deviation in temperatures has lasted throughout the year, affecting part of the economic development in 2023.

"Fortunately, we are just seeing a reduction in their anomalies," he pointed out.

Source: Andina