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Peru’s Central Bank Now Sees Economy Shrinking After Big Forecast Move
Peru central bank chief Julio Velarde said the nation’s gross domestic product will contract this year, marking the first time a government official publicly acknowledges the degree of the economic downturn. The central bank said GDP will contract 0.5% in 2023, compared to September’s forecast for 0.9% growth, a virtually unattainable projection considering the economy has now shrunk for six straight months. Velarde lowered his 2023 inflation estimate to 3.1% from 3.8% on easing food prices. Next year, the economy will expand by 3% while consumer price growth ticks down to 2.3%, according to the forecasts ... (full story)