Andina

Peru: Business expectations might favor GDP growth

11:09 | Lima, May. 5.

Improved business expectations regarding Peru's economic performance for the current year may boost GDP by 3.9% in 2018, Peruvian Institute of Economy (IPE) reported.

"I think Peru's GDP could expand between 3.8% and 3.9% by the end of 2018," IPE General Manager Diego Macera said when asked about a possible better performance of the Peruvian economy.

According to the 2018-2021 Multiannual Macroeconomic Framework, the Government projected national GDP will increase 3.6% this year. 

In this sense, Macera pointed out private investment may see growth if the country starts working on large projects.

On the other hand, greater strides would have to be made in public investment, as in the case of the Lima Metro Line 2 project. 

Plus, Jorge Chavez International Airport works might provide further contribution (to public investment), Macera told Andina news agency.

"This year must focus on unlocking public investment for the reconstruction of the country's northern regions, as it would contribute almost one percentage point of the country's GDP growth," he pointed out.

Business expectations

According to Central Reserve Bank's (BCR) latest monthly survey, business expectations regarding Peru's economic performance experienced recovery last April.

Said study shows confidence among entrepreneurs concerning Peruvian economy for the next three months increased from 53.5 points (March) to 58.6 points (April).

Similarly, companies' 12-month ahead expectations for the economic situation went up from 66.1 points (March) to 69.2 points (April).

(END) MMG/JJN/JAA/RMB

Published: 5/5/2018