Andina

ECLAC maintains Peru's 2018 growth forecast at 3.5%

11:06 | Lima, Apr. 11.

The Economic Commission for Latin America and the Caribbean (ECLAC) on Wednesday kept Peru's 2018 growth projection unchanged at 3.5%, similar to its December 2017 forecast.

In this sense, the United Nations organization expects Peruvian GDP to climb from 2.5% (2017) to 3.5% (2018).

"Several countries —that have been growing at moderate rates— will register an acceleration in their economic activities, such as Peru (3.5%), Chile (3.3%), and Colombia (2.6%) (...) as in past years," ECLAC noted.

"In 2018, this expansion will show a heterogeneous trend among countries and subregions," it added.

Latin America

The regional organization also updated its 2018 growth projections for countries of the region and maintained its average regional growth forecast at 2.2%, after expanding 1.2% last year.

Within this framework, South American economies might rise 2%, mainly driven by greater dynamism in Brazil (+2.2%).

Additionally, ECLAC maintained its 3.6% growth projection for Central American nations.

Among Latin American countries, Panama would be the economy that will record the highest growth rate (5.6%), followed by the Dominican Republic (5%), and Nicaragua (5%).

Factors

According to ECLAC, this rise will be mostly underpinned by greater dynamism in external demand. Yet, domestic demand will also play an important role to accelerate growth in the region.

"We expect to draw more investments, compared to previous years, and private consumption will remain a vital engine for domestic demand," it pointed out.

(END) CNA/JAA/MVB

Published: 4/11/2018