Copper price volatility Peru lowered its economic growth forecast for 2021

Peru's central bank recently cut its forecast for GDP growth in 2021 to 10.
7 percent from 11.
5 percent previously, as a second wave of coronavirus infections eased a rapid rebound
in the world's second-largest copper producer.

The bank lowered its growth forecast for the key mining sector to 11%
in 2021 from its previous forecast of 14.
4%.

Mineral transport accounts for 60%
of Peru's total exports.
Central bank governor Julio Velarde said that in this scenario, a surge in copper prices may signal a good outlook, but in the short term, the ongoing economic impact of the pandemic will dampen the rise
in copper prices.

"The international winds are conducive to the rapid recovery
of the Peruvian economy," Velarde said.
Better mineral prices will bring an upward trend
in terms of growth.
”

The bank predicts that Peru's trade surplus will reach a record $14.
48 billion by 2021, compared to $7.
75 billion
last year.

Velarde said he expects the trade surplus to continue to grow into 2022
as mining exports normalize and coronavirus infections slow.

Velarde added that the bank currently expects Peru's economy to grow by 4.
5% in 2022, slightly higher than its previous forecast of 4.
0%.