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GDP Forecast Raised Following Strong April Activity Data

PERU
  • Following the much stronger-than-expected April GDP data, the Peruvian Institute of Economics (IPE) has raised its growth projection for this year to 3%, from 2.4%, according to Andina. The IPE said that the 5.3% y/y increase in GDP in April, the highest since September 2021, was driven by the effects of better weather conditions for traditional agriculture and industrial fishing.
  • The IPE expects economic growth to have remained strong in May, and then to continue beyond that, supported by higher mineral prices, lower inflation and recovering confidence. It also expects the release of funds from AFPs to support private spending in H2, with risks biased upwards due to the liquidity sources that households will experience from Q3.
  • In other news, former President Alberto Fujimori is reported to be returning to politics after signing up to join the Popular Force political party, led by his daughter Keiko Fujimori. The move suggests he may be planning to play a more prominent role in the next elections, likely in 2026.

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