Peru's economy expected to grow up to 3.5% in 2025, minister says

By Marco Aquino

LIMA, July 1 (Reuters) - Peru's economy is expected to grow between 3.0% and 3.5% in 2025, economy minister Raul Perez said on Tuesday, lower than the government had previously anticipated and compared to 3.33% growth logged last year.

Perez told a press conference he did not see "severe risks" to Peru's economy from the United States' tariff policies.

The minister's estimate is above the central bank's late June forecast of 2.9% growth, but below the government's last official estimate in April, when it had projected an expansion of 3.5% to 4%.

The government had warned in April that the estimate could be impacted by global uncertainty in face of trade tensions between the United States and China. On Tuesday, Perez pointed to more recent factors such as the Israel-Iran conflict.

"The 3.5% is an optimistic scenario and we are working for that to materialize," he told reporters. "This depends on what happens externally; if the international environment is stable it is quite likely we will stick to the optimistic scenario."

Peru's economy was for decades one of Latin America's top performers, but in recent years growth has slowed as social unrest hit the country's mining sector amid political instability.

Perez said that ministry would meet with executives from embattled state-run oil firm Petroperu, to ensure that the company's cashflow remained "viable."

The firm, which has been seeking new sources of financing to avoid resorting to more aid from the state, posted a $111 million net loss in the first three months of this year following a $742 million loss last year.

"We are working with Petroperu to find a more structured solution that will allow it to solve the financial problems for the next three or four years and to avoid having specific cash problems," Perez said.

Perez added that the government was not planning a new rescue package for Petroperu, which owes billions of dollars to foreign banks and bondholders due to money it borrowed to invest in its Talara refinery.