Peru's economy will expand 2.8% this year, accelerate to 4.0% in 2018, and consolidate growth around its potential of 4.0% in the 2018-2021 period, the Economy and Finance Ministry (MEF) projected Friday.
According to
MEF's Multiannual Macroeconomic Framework, the 2018-2021 period will seek to reach rates of 5.0%
through greater administrative simplification, improved regulatory quality, formal and competitive employment promotion, as well as increased investment in infrastructure.
"Peru's economy is currently in a recovery phase, characterized by the implementation of a countercyclical macroeconomic policy, the dissipation of adverse shocks […] and a favorable international context," it reads.
MEF explained this path of recovery will be based on three phases. The first one will begin in the second half of 2017, with the launch of economic acceleration emerging from an expansive fiscal policy.
It will mainly focus on the
reconstruction process (rehabilitation and prevention works), as well as the implementation of infrastructure for the 2019 Pan American Games. This will allow Peruvian economy to grow 3.2% in the second part of the year.
Public investment
It must be noted
public investment began to rebound following
Coastal El Niño phenomenon. The weather event was characterized by heavy rains,
landslides and floods, which destroyed infrastructure and crops, leaving many citizens homeless.
After a 7.0% drop —in real terms— between January and May, public investment grew 3.7% last June and subsequently accelerated to 10.9% in July.