Peru economy returned to expansion in March following two months of decline, albeit growth was significantly lower than predicted. Economic activity increased by 0.22% YoY. The Q1 2023 contraction of 0.43% and slow March growth underscore the lingering impact of large-scale protests that disrupted the economy. Additional challenges include flooding in the north due to warming ocean waters, potentially exerting further pressure on the economy throughout the year. Despite the unrest, Peru’s central bank has maintained its benchmark interest rate at 7.75% for the past four months.