Peru central bank cuts 2026 GDP growth forecast to 3.2%

(Adds detail throughout) By Marco Aquino LIMA, Sept 18 (Reuters) — Peru's central bank lowered its projection for gross domestic product (GDP) growth this year to 3.2%, from a previous estimate of 3.4%, due to the impact of the El Niño weather phenomenon, central bank chief Julio Velarde said on Friday. The bank also raised its 2026 inflation forecast to 4.2% from 3.8%, and projected 2027 GDP growth at 3.0%. • In its quarterly report, the central bank projected the 2026 fiscal deficit at 1.5% of GDP, improved from a prior estimate of 1.8%, while projecting the 2027 fiscal deficit also at 1.5% of GDP.

• El Niño is already affecting Peru's fishing and agricultural sectors, posing a risk to exports of fishmeal and fruit — both strong growth drivers in recent years — even as the country remains the world's third-largest copper producer. • Velarde said despite the current context, he sees "enormous potential" in Peru, mainly in the mining sector. • He said an interest rate hike in coming months could not be ruled out, but he added the "opportune" moment would be sought to cut rates. (Reporting by Marco Aquino; Writing by Raul Cortes; Editing by Anthony Esposito and Kylie Madry) ((Raul.CortesFernandez@thomsonreuters.com; +5579407905;)