El Niño Slows Peru's Economic Growth
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Insights by Echo AI
El Niño phenomenon is expected to reduce Peru's economic growth by 0.9 percentage points in 2026 and 1.3 points in 2027, according to BBVA Research. The bank has revised its growth projections due to the increased impact of El Niño, with the economy now expected to grow at 2.9% for both years. Despite improvements in business confidence and private consumption, the primary sector's vulnerability to climate anomalies is causing concern.
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