Julio Velarde warns El Niño will hit Peru’s economy as he receives top Lima honor

Julio Velarde, president of the Banco Central de Reserva del Perú, was awarded the Order al Mérito in the grade of Gran Cruz by the Municipalidad Metropolitana de Lima. The ceremony, held on 15 July, was attended by elected president Keiko Fujimori and acting mayor Renzo Reggiardo.

Velarde highlighted Peru’s strong macro‑economic fundamentals – the lowest inflation in Latin America this century, steady formal‑sector employment and robust capital‑goods imports – but cautioned that the El Niño phenomenon will soon depress key primary activities. He noted a 74 % drop in fishery output and negative growth in agriculture, which could lower GDP growth in the coming months despite overall favorable indicators.

He credited the central bank team for maintaining price stability and expressed confidence in the incoming government, wishing President‑elect Fujimori success while urging preparedness for the climate‑related slowdown.