Privately-run banking institution Banco de Credito (BCP) has raised its Peru 2018 GDP growth projection from 3.5% to 3.8%.
The forecast was due to the orderly
political transition witnessed in the Inca country, as well as a higher-than-expected GDP expansion of about 4% for the period between January and June.
According to a BCP's Economic Studies report, Peru's
domestic demand may have grown around 4.5% in the first half of 2018.
Likewise, the financial institution pointed out the V-shaped recovery —forecast a year ago— has materialized even stronger than projected:
(ii) Imports volume increased to double digits in Jan-May 2018 (capital goods without construction materials: 16% and durable consumer goods: 10%).
(iii) Domestic cement consumption expanded above 8% between April and May 2018, the highest rate in almost five years.
(iv) General Sales
Tax (IGV) collection saw an 11% increase —in real terms— during the first five months of 2018, the highest growth rate for such period since 2011.
The report also indicated the drivers of this economic rebound are the trade partners and average
copper price on the international market.
In addition, Peru's
public investment expanded around 15% in real terms between Jan and May 2018. For its part,
private investment is expected to rise by nearly 4.5% in 2018 and 2019.
It must be noted BCP will maintain its economic growth projection for 2019 at around 3.5%.
(END) JJN/JJN/JAA/MVB