Peru’s central bank slightly lowers 2023 economic growth estimate

LIMA (Reuters) – The Central Reserve Bank of Peru on Friday slightly reduced its economic growth projection for 2023 to 2.9% from 3.0%, according to a report published by the central bank.

Annual inflation in the copper-rich South American country is seen reaching 8.2% in 2022 before declining to 3% in 2023, the central bank said.

It sees a 2022 fiscal deficit of 1.6% of gross domestic product, compared to a previous forecast of 1.9%, the report noted.

Peru is under a state of emergency amid violent protests that have left at least 16 dead following the ousting and arrest of former President Pedro Castillo.

The head of Peru’s central bank said on Friday he “hopes” the protests will ease this month, adding that he expected their impact on the economy to be moderate.

(Reporting by Marco Aquino; Writing by Valentine Hilaire; Editing by Brendan O’Boyle and Paul Simao)