Overview
- Speaking at the BCRP’s Encuentro Económico in Piura (Oct. 6–7), Julio Velarde said Peru faces its best terms of trade since about 1950, backed by a trade surplus, a positive current account, low inflation and a stable sol supported by strong reserves.
- The central bank projects GDP growth of about 3.2% in 2025 and 2.9% in 2026, with a fiscal deficit near 2.4% of GDP that Velarde cautioned should be lower given the export boom.
- Velarde warned that a wave of approved spending measures threatens to erode Peru’s historically solid fiscal position, stressing the need to save during booms to preserve policy space.
- He highlighted India’s rising role as a buyer of Peruvian goods, noting it is the third destination for total exports and second for traditional shipments, with scope to grow further.
- Pointing to Piura’s potential in hydrocarbons, energy and mining, he called for clearer information and trust-building on projects like El Algarrobo and for streamlining permits as insecurity and political turnover weigh on investment.