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FocusEconomics: Peru economy picks up pace in 1Q 2018

COP20 Centro Financiero Lima San Isidro Surco

COP20 Centro Financiero Lima San Isidro Surco

10:07 | Lima, May. 19.

Peruvian economy gathered pace between January and March 2018, following a slowdown in the fourth quarter of 2017 due to a troubled political environment, the latest FocusEconomics' LatinFocus Consensus Forecast report affirmed.

According to analysts, the Inca country's economic activity accelerated in the first three months, underpinned by greater foreign sales, higher domestic consumption, and faster credit expansion. 

Furthermore, the mining sector recovered last March, after having registered two consecutive months of decline.

The report also noted the construction sector continued to expand at a healthy pace, mostly driven by favorable financing conditions.

Regarding the second quarter, FocusEconomics pointed out public investment —which decreased last March— rebounded in April. 

"This, together with a marked improvement in business confidence and some reduction in the fiscal deficit, bodes well for fixed investment going forward," the report read.

FocusEconomics also projected Peruvian economy will gain steam in the coming quarters, "especially if the new government (led by President Martin Vizcarra) is able to ramp-up public investment to rebuild infrastructure damaged by the Coastal El Niño and improve the business climate."

Within this framework, panelists estimated Peru's GDP will expand 3.6% in 2018 —unchanged from last month's forecast— and 3.7% and 2019.

(END) NDP/JAA/MVB

Publicado: 19/5/2018