February 2023: A Disappointing Economic Performance in Peru

In February 2023, Peru’s economic growth failed to meet the optimistic forecasts set by economists, signaling a troubling pause in the country’s recovery following the pandemic. Data from the National Institute of Statistics and Informatics (INEI) revealed stagnation across several critical sectors, surprising many who had expected a stronger rebound. This underwhelming performance has reignited debates about the durability of Peru’s economic revival amid ongoing global uncertainties and persistent domestic hurdles.

The subdued growth figures prompt urgent questions regarding fiscal policy effectiveness and long-term sustainability.This article examines the underlying causes behind this slowdown, compares Peru’s situation with regional trends in Latin America, and discusses what these developments mean for policymakers and business leaders.

Economic Growth Misses Targets Amid Sectoral Struggles

Despite hopes for a vigorous resurgence after pandemic-induced setbacks, February saw key industries such as mining and manufacturing falter. These sectors have historically been pillars of Peru’s economy but showed signs of sluggishness that contributed significantly to overall underperformance.

Main factors identified include:

• A decline in global demand for commodities impacting export revenues
• Political uncertainty undermining…