Peruvian GDP en route to exceed pre-pandemic levels in 2021, says Central Bank

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Peruvian GDP en route to exceed pre-pandemic levels in 2021, says Central Bank

Later last week, the Central Bank of Peru had told that the tourism-dependent economy has been well en-route to surpass its 2019-GDP in fiscal 2021, portraying a propitious picture for a number of emerging and developing market economies which have still been grappling with a pandemic-led fiscal upheaval.

In tandem, citing a robust economic recovery roaring over the horizon, Peru’s Central Bank’s head of economic studies, Adrian Armas said in a call with the reporters, “Peru will be one of the few economies in the region where the GDP for the year will be higher than it was in 2019”.

Nevertheless, latest remarks from Adrian Armas comes over the heels of a Thursday statement from the Peruvian Central Bank President Julio Velarde, while he was quoted saying that the LATAM economy would grow by 13.2 per cent in 2021, above a prior official estimate of 11.9 per cent.

Peruvian economy set to exceed pre-pandemic level

Apart from that, as the growth-curve of Peruvian economy, which had contracted as much as by an 11.1 per cent last year amid a raft of stiffer pandemic restriction measures, has been set to exceed a pre-pandemic level this year, Armas was quoted saying that the Central Bank would ‘highly likely’ to downsize its guidelines for the nation’s fiscal deficit, which currently stands at a 4.0 per cent of GDP (Gross Domestic Product).

Nonetheless, the Peruvian Central Bank had raised its benchmark borrowing cost later last week to 2.0 per cent, marking off a fourth rate-hike in less than a year amid a sustenance in skyrocketing inflation indicators.