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22 Mar 2024
Peru: Staff Concluding Statement of the 2024 Article IV Mission
The economy had a slight contraction in 2023, due to multiple consecutive shocks, while inflation decelerated rapidly. Economic growth declined to -0.6 percent in 2023, due to climate-related shocks and social turmoil. Inflation is converging towards the target thanks to the BCRP’s decisive monetary policy tightening. Strong supervision maintained financial stability. The fiscal position remained strong, although the fiscal deficit (of the non-financial public sector) reached 2.8 percent of GDP (above the fiscal rule target of 2.4 percent of GDP), reflecting a shortfall in tax revenues due to the economic slowdown. Led by sizable import compression and better terms of trade, the current account registered a surplus of 0.6 percent of GDP. International reserves remain at a comfortable level of about 28 percent of GDP.
