World Bank raises Peru’s 2024 growth forecast to 3.1%

The World Bank increased its 2024 GDP growth projection for Peru from 2.9% to 3.1%.

The bank’s prediction is now in line with that of the country’s central bank and slightly above the range of forecasts between 2.9% and 3.0% from Peruvian banking sector players, such as local giant BCP, Scotiabank and BBVA. 

The government has the most bullish projection for the year at 3.2%.

In the case of Peru’s 2025 growth forecast, the World Bank reduced it from 2.6% to 2.5%.

The bank’s regional 2024 prediction for Latin America and the Caribbean is 1.9%, the lowest among all the world’s regions. 

Growth has been driven by consumption in most countries, while investment has been impacted by high interest rates and remains weak in Peru and countries such as Argentina, Chile and Colombia, the bank said in a report.

“Low average growth is a structural problem, and growth is at the same level as in 2010. There’s much to be done to make countries more attractive to foreign investment,” said William Maloney, the bank’s chief economist for Latin America and the Caribbean.

Maloney pointed out that low growth rates have impeded regional progress in areas such as social mobility and poverty reduction. He also said that the region’s middle class is struggling due to the combination of higher cost of living and slow wage growth. 

A positive aspect for the region is the fight against inflation, with the World Bank expecting many countries to reach their inflation targets either this year or next.