Peru Revises 2025 Growth Outlook as Mining Struggles Persist

2025-06-21 08:59:23

(MENAFN) Peru’s Central Reserve Bank (BCRP) has revised its growth forecast for 2025, lowering the projection from 3.2% to 3.1%. The revision, announced by BCRP President Julio Velarde on Friday, stems from disappointing results in the metallic mining sector, which has underperformed more than expected.

Velarde unveiled the adjustment during the central bank’s June Inflation Report presentation, underscoring the adverse impact of weaker mining performance on the country’s economic outlook.

In addition to domestic factors, the BCRP president pointed to global uncertainty as a key contributor to the revision. While some risks have softened in recent days, Velarde warned that overall risk levels remain “quite high,” signaling ongoing global economic volatility.

The BCRP’s updated report also included a downward revision for Peru’s primary GDP sectors, including agriculture, fishing, mining, and hydrocarbons. The forecast for 2026 GDP growth has been lowered from 2.6% to 2.1%, reflecting challenges across various industries.

Notably, the metallic mining sector saw the most significant downgrade, with growth expectations slashed from 2% to a meager 0.3%. Similarly, the hydrocarbons sector’s outlook was trimmed, from 5.5% to 4%.

Despite these cuts, Velarde reaffirmed that the central bank is maintaining its 2026 GDP growth forecast at 2.9%, indicating some optimism for the longer-term outlook.

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