Peru Economy to Expand by Annual Average of 5.1% Between 2021-2026 – Ministry

RIO DE JANEIRO, BRAZIL – The economy of Peru, the world’s second largest copper producer, is expected to grow an annual average of 5.1% between 2021 and 2026, the economy ministry said on Monday, January 11th.

The ministry held its prior projection for a 10% expansion for this year, the highest rate since 1994, rebounding from an estimated 12% drop in 2020, according to a report prepared by the ministry for presidential candidates ahead of the upcoming April elections.

Hard-hit Peru is struggling through one of its deepest recessions in decades following months of battling the pandemic and a looming second wave of infections that is already threatening to overwhelm its hospitals.

The Andean nation’s incoming president must find a way to reignite the country’s sputtering economy while tending to a ballooning fiscal deficit, thanks to stimulus measures implemented last year worth 12% of GDP, the ministry said.

The report highlighted as key issues informal work, the importance of strengthening public finances, and a pension system with low levels of coverage, among others.

The presidential and legislative elections will be held on April 11. The new Peruvian government will take office at the end of July.