Perus GDP growth misses forecasts in December as unrest simmers

Peru's GDP growth misses forecasts in December as unrest simmers

LIMA (Reuters) – Perus economy slowed down for the second month in a row, missing forecasts for the last month of 2022, figures from the national statistics institute showed on Wednesday, as the country faces a wave of social unrest that began early December.

The Andean nations gross domestic product (GDP) rose 0.86% year-on-year in the month, while economists expected a 1.25% expansion, according to the median forecast in a Reuters poll.

Protests have rocked the worlds No. 2 copper producing country, since the December 7 removal and arrest of former President Pedro Castillo. The clashes between protesters and security forces have blocked roads and left dozens dead.

The central bank‘s economic studies unit last week said the unrest had likely impacted the country’s economy and inflation, as it hit both the countrys infrastructure and transport networks.

With the latest figure, Peru‘s 2022 economic growth lands at 2.68%, a sharp decline from the 13.61% jump the country – historically one Latin America’s fastest-growing economies – recorded in 2021.

The 2021 figure, Perus highest on record, was driven by a rapid recovery from the coronavirus pandemic-driven downturn.

(Reporting by Marco Aquino; Writing by Gabriel Araujo; Editing by Sarah Morland)