Peru: Finance Minister says Q1 growth likely close to 4%

Photo: ANDINA/Luis Iparraguirre

00:00 | Lima, Apr. 26.

In remarks to foreign businesspeople, Economy and Finance Minister Jose Salardi forecast that the Peruvian economy would have grown near 4% in the first quarter of 2025.

Similarly, the government official reiterated that it could expand by 4% by the end of the current year.

"The (growth) projection for 2025 is 4%. We are maintaining this goal," Salardi said during an event organized by the Peruvian-Chinese Chamber of Commerce (Capechi) in Lima's Miraflores district on Friday.

The minister explained that this would be supported mainly by the strengthening of public and private investments, as well as a greater boost to key sectors of the economy such as mining and agriculture.

Among other measures that would support this outcome are the "deregulation shock" aimed at speeding up investments and reducing bureaucracy, consolidating business confidence, and further easing of financing costs —all of this accompanied as well by low inflation and high commodity prices.

In addition, the outlook looks favorable given that business expectations remain in the optimistic range at both 3 and 12 months, despite the fact that 2025 is characterized by the start of the electoral cycle ahead of the 2026 General Elections, in which a new President of the Republic will be elected.

"We want to lay the foundations for long-term growth and leave an important legacy that truly sets a development path," he stated.

If the Ministry of Economy and Finance's (MEF) estimates are met, Peru would lead economic growth in the region in 2025, only behind Argentina, which is expected to grow 4.8%, although that would be largely due to a "statistical rebound," according to Salardi.

First quarter

The minister anticipated that Peru's Gross Domestic Product (GDP) in the first quarter would have recorded growth near 4%.

"The preliminary projections for what will be the close of the first quarter should place us with growth close to 4%, and the great challenge we have is to sustain that through the end of the year," he stated.

The head of the MEF considered that in 2025, the economy "has started well," continuing the trend observed in previous quarters.

"February had a slightly lower (growth) rate, but that is explained by the fact that last year was a leap year, meaning there was one more day of economic activity; otherwise, we would have been at 4% levels that month," Salardi pointed out.

Just in the January-February period, the Peruvian economy grew 3.4% driven by the boost in domestic demand, he concluded.

(END) GDS/JMP/MVB

Published: 4/26/2025

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Peru: Finance Minister says Q1 growth likely close to 4%

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