(Bloomberg) -- Peru’s economy posted its second-worst contraction in more than 30 years in 2023, as political turmoil and extreme weather hurt the once booming nation. 

Gross domestic product shrank 0.6% in 2023 compared to a year earlier, the country’s statistics agency INEI said in a release Thursday. That is the second-deepest decline since 1990, when the economy was in the grips of a hyperinflation crisis, according to the central bank. The worst result in that period was in 2020 when the pandemic sent the economy into an 11% plunge.

The result was largely expected by analysts. GDP contracted 0.4% in the last quarter of 2023 year-over-year, as expected by the median forecast of nine economists surveyed by Bloomberg. Compared to the previous quarter, the economy grew 0.4%, INEI said. 

Peruvian authorities are hoping that the economy can bounce back in the first quarter of the year, betting that positive base effects will now show economic growth. The government has a forecast of 3% growth for 2024. 

©2024 Bloomberg L.P.