Perus economy growing at healthy clip despite social unrest, minister says

LIMA (Reuters) – Perus economy has maintained its strength despite recent social unrest, Economy Minister Alex Contreras said on Tuesday, with the Andean nation still on track to meet growth forecasts thanks to the help of a $1.55 billion recovery plan.

While weeks of deadly protests following the ouster and detention of former President Pedro Castillo have impacted some sectors, particularly tourism, Contreras said, the economy could grow “close to” 4% this year while the Peruvian sol remains the most stable currency in the region.

Contreras said the economy is still expected to grow 3% in the first quarter of this year, maintaining a projection from last month.

In late December, Contreras announced a $1.55 billion plan to reactivate the economy, targeting the regions most impacted by the protests through the expansion of welfare provisions such as pensions, soup kitchens and access to natural gas in homes as well as public works, and investments in mining and agriculture.

He added that Peru was looking to promote lithium development and will be creating a lithium working group, though he said a formal announcement had yet to be made.

Peru is the worlds second-biggest copper producer, but so far has limited lithium production.

Contreras said mining companies had expressed interest in expanding their operations in the country despite the unrest.