Estadio Nacional, Via Expresa, Ministerio de Defensa,Javier Prado, Centro Financiero, Viviendas, Construcción, Campo de Marte, Trebol de Javier Prado, Miraflores Surco
Peru's domestic demand, the sum of the country's consumption and public and private investments, will double growth in 2017 and 2018 in light of greater activity expectations in both fields, the Central Reserve Bank (BCR) projected on Friday.
In its latest inflation report, BCR forecasts a 2% rise in domestic demand for 2017, thus easing its 3.3% March estimate.
However, projections for 2018 were revised upwards from 3.7% (March) to 4% (June).
Public investment
In this line, BCR forecasts 3.2% GDP growth in the second half of the year underpinned by public investment, which is expected to expand 19.3% in the said period.
Public investment growth forecast for the whole year stands at 7%, boosted by General Government spending (11.1%).
"This growth reflects an expansionary fiscal policy geared towards infrastructure reconstruction, in response to Coastal El Niño phenomenon [disasters]," BCR Governor Julio Velarde affirmed.
Public investment is projected to further hike (15%) in 2018, also driven by reconstruction spending.
Private expenditure
The BCR head also estimated a 1.6% rise in private spending this year, explained by greater consumption (+2.5%).
Projections for both figures in 2018 stand at 5.3% and 3%, respectively.
Remarks were made during the presentation of BCR's June 2017 Inflation Report.
(END) RGP/JJN/DHT/MVB
Published: 6/17/2017