Peru’s economy should rebound in the second half of the year as temporary shocks subside, according to the finance ministry.
(Bloomberg) — Peru’s economy should rebound in the second half of the year as temporary shocks subside, according to the finance ministry.
Mass unrest, flooding and a fertilizer shortage caused the economy to contract in the first quarter, but the government forecasts a recovery later in the year.
“Some are saying that the economy is slowing, but no, this is just a shock that is going to dissipate over time,” Finance Minister Alex Contreras said at an event in Lima.
The economy contracted 0.24% in the first four months of the year compared to the same period in 2022, according to a report last week by the national statistics agency.
Read More: Peru’s Growth Falls Short of Even the Most Pessimistic Forecast
Contreras estimated that the economy grew slowly in May and June, though didn’t give estimates.
Still, the recovery may be affected by the El Nino weather pattern, which brings the risk of flooding and disruption to agriculture. The Andean nation is a major exporter of avocados, grapes, blueberries and asparagus, among other products.
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