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Peru’s Central Bank Warns New Laws Hurt Fiscal Stability as It Lifts 2025 Outlook

The central bank chief says recent congressional measures are already hurting Peru’s public finances.

Overview

  • BCR president Julio Velarde cautioned that a set of recently approved congressional laws is already damaging public accounts and threatens fiscal and macroeconomic stability.
  • Velarde labeled the proposal to allow ONP affiliates to withdraw up to 3 UIT as insensate, stressing the ONP is a pay‑as‑you‑go system without individual funds to draw from.
  • He argued any replacement pension model should be mandatory and built on individual accounts to protect long‑term sustainability.
  • The BCR raised its GDP growth estimates to 3.3% for 2025 and 3.0% for 2026, and now projects private investment will grow 9.5% in 2025 with a strong chance of topping 10%.
  • Citing a meeting at the presidential palace, Velarde noted a commitment to close the year with a 2.2% fiscal deficit after a 2.3% reading through November, though he warned political risks remain.