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Key copper mines in Peru are cranking up activity again after protests and blockades dented production, power data analyzed by Reuters showed, potentially boosting supply from the world’s no. 2 producer of the red metal.

Major copper mines including Las Bambas, owned by China’s MMG Ltd (1208.HK), and Glencore Plc’s (GLEN.L) Antapaccay are drawing on full power, publicly available electricity data up to Friday show, after reduced usage amid disruptions.

Economy-Finance Minister Alex Contreras on Tuesday said that “Peru is back again,” as there is international and local interest in the South American country.

The Cabinet member pointed out that the slowdown is starting to moderate, adding that there are already indicators which prove that Peruvian economy is once again entering a recovery stage.

Exports are recovering again. Investment indicators also show that (trend). In the case of the National Government, the main tools are public consumption and public investment, which have been advancing at good pace, he pointed out.

The Ministry of Energy and Mines (Minem) on Tuesday reported that, according to the 2022 Portfolio of Mining Exploration Projects, there are 23 gold projects nationwide —thus ranking first in the portfolio— which together add up to an investment of US$254 million and account for 43.4% of the nationwide exploration budget.

Minem states that exploration is essential for the development of mining. Therefore, it is the first link in the most important economic activity in Peru, making it possible to find new deposits and to extend the useful life of the mines that are currently in operation, which expands the attraction of domestic and foreign investment in favor of the country.

It should be noted that copper is the main metal exported by Peru and one of the largest revenue generators for the national exchequer.

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The Ministry of Economy and Finance (MEF) on Friday presented the 2021-2024 Update Report on Macroeconomic Projections, which maintains the main forecasts for economic indicators, due to the fact that a progressive improvement in economic activities has been observed, which will continue consolidating as greater control of the pandemic is achieved and the vaccination process moves forward.

Thus, GDP growth projection is maintained at 10% for 2021, which would be the highest rate recorded since 1994, despite the strong contraction recorded in 2020 (-11.1%).

For the 2022-2024 term, GDP growth projection is maintained at 4.5%, sustained by domestic demand, exports increase due to the startup of production at copper mines, external demand recovery, as well as the boost to competitiveness and productivity.

Moody’s Investors Service on Wednesday announced that it has changed its outlook on the Peru and Brazil banking systems to stable from negative. This change comes in light of an improving operating environment over the next 12-18 months.

The expected for the increise of Peru in economic growth and ample support packages will aid local banks’ asset quality and boost profitability.
Moreover, strong liquidity and solid core deposit funding will continue to support Peruvian banks’ financial profiles in 2021.