In the early months of 2017, the El Niño phenomenon caused heavy rains and flooding in many parts of Peru which brought damages and large amounts of government investment. This coincided with some of the slowest economic growth Peru has seen in years. Nasdac states that Reuters predicted this trend to continue throughout March.
Official results from INEI published today report that the Peruvian economy in fact slowed less than expected at 0.71% as Reuter's analysts report that inflation rates are likely to re-enter their target range in the third quarter of this year.
According to Nasdac, Reuters also reports that the resilient Peruvian economy will be additionally boosted by public investment in aid and reconstruction initiatives as the year goes on. Prudent actions by the central bank in response to slow economic growth, including cutting interest rates, have been applauded by Prime Minister Fernando Zavala who claims that it will “boost activity” and put Peru on track towards an expected 3% overall economic growth.