The South American country's economy is expected to grow 1.1% this year, the economy ministry said in Peru's official gazette. That is down from a previous estimate of 2.5%, after data showed the economy shrank in the first half of 2023.
The world's second-largest copper producer has taken a hit as prices of the metal fell from an average of $400/lb last year to an estimated $380/lb this year and $360/lb next year. Warmer seas are also expected to bring heavy rains along the Pacific Ocean coastline, likely damaging agriculture and key infrastructure such as roads. That makes El Nino the largest immediate threat to Peru's economy, the government said.
Finance Minister Alex Contreras, in a press conference on Tuesday, vowed that the government was working "intensely" to reverse the trend, and that inflation was slowing, with the annual rate set to dip to 4% by year's end.