Business expectations in Peru are rising: an optimistic economic future.

The Ministry of Economy and Finance (MEF) has shared an encouraging analysis of the Peruvian business climate, following the results of the recent Macroeconomic Expectations survey conducted by the Central Reserve Bank of Peru (BCRP). This report reveals that, for the third consecutive month, business expectations have shown a notable strengthening, reflecting an optimistic outlook across various economic indicators. The survey covered several key indicators, including expectations regarding the overall performance of the economy, the situation of businesses, product demand, hiring, and business investment. All these parameters are at levels considered optimistic, suggesting a favorable trend in economic activity and the overall business environment. Particularly noteworthy are the expectations related to hiring. According to the data, these expectations stood at 53.6 points, the highest level since September 2016. This increase indicates a clear intention among businesses to expand their workforce as they gain confidence in a more robust economic future. Moreover, projections for investments have also shown a significant increase. Three-month investment expectations reached 52.3 points, the highest value recorded since January 2020. This trend indicates that companies are willing to allocate resources to development and expansion projects, which could translate into a boost for the local economy. Regarding perceptions of the general state of the economy, business owners have responded positively, placing expectations at 51.9 points, the highest level since November 2020. This improvement is indicative of growing confidence in economic recovery, especially after the significant challenges the country faced in recent years. Sectoral performance also showed encouraging signs, with expectations reaching 52.5 points, marking the highest level since March 2021. This result suggests that different productive sectors are anticipating favorable performance, which is crucial for sustainable growth. The MEF has linked this improvement in business expectations with the positive performance of economic activity indicators. In fact, electricity production, a key component of Gross Domestic Product (GDP), grew by 3.7% in July and 3.1% in August, representing the highest growth rates since February 2024. This increase in production suggests that energy demand is on the rise, a vital indicator of economic activity. In the hydrocarbons sector, the results are equally promising, with a 21.7% increase in July and a 9% increase in August 2024. These figures indicate sustained growth over two consecutive months, which is a positive sign for the country's energy sector. Additionally, imports of capital goods have seen notable growth, with a 13.6% increase in July and a 10.8% increase in August. This rise includes goods intended for industry, agriculture, construction materials, and transportation equipment, suggesting that businesses are investing in strengthening their infrastructure and productive capacity. In summary, the data presented by the MEF and the BCRP survey reveal an optimistic outlook for the Peruvian business environment. With growing confidence in the economic future, businesses are demonstrating a clear willingness to invest and expand their operations, which could provide a significant boost for the sustainable growth of the country. Attention will now focus on how these expectations translate into concrete results in the short and medium term.