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Peru economy to expand 2.8% in 2017, 4% in 2018

LIMA, PERÚ-AGOSTO  23.Presidente del Consejo de Ministros y titular de Economía y Finanzas, Fernando Zavala, en sesión ordinaria de la Comisión de Economía del congreso. Foto:ANDINA/ Dante Zegarra

LIMA, PERÚ-AGOSTO 23.Presidente del Consejo de Ministros y titular de Economía y Finanzas, Fernando Zavala, en sesión ordinaria de la Comisión de Economía del congreso. Foto:ANDINA/ Dante Zegarra

14:34 | Lima, Aug. 23.

Peru's economy will expand 2.8% in 2017 and 4% in 2018, based on signs suggesting a rebound in productive activities, Economy and Finance Minister Fernando Zavala projected on Wednesday at Congress.

National economy grew 4% in 2016, he recalled.

Nonetheless, the effects of Coastal El Niño phenomenon and Lava Jato graft case —involving Brazilian construction company Odebrecht— weakened the inertia of Peruvian GDP during the first months of the current year.

"Peruvian economy is changing its course, and it will grow 2.8% this year," Zavala assured adding GDP will "expand 4% in 2018."

"We expect greater dynamism of productive activities in the coming months, as we already see signs of a rebound in the economy," the Minister said.

Private investment

Likewise, he underlined that entrepreneurs' confidence in Peru is on the "optimistic trend" saying "there are signs [suggesting] private investment will increase in 2018."

"Public investment has started to rebound, and we are on positive ground," Zavala stated in this sense.

Royalties and canon 

The also Prime Minister said that higher metal prices —on the international market— will have a positive impact on the economy.

"It will mean higher royalties, and a higher mining canon for the regions next year," he concluded.

Remarks were made during the presentation of the Development Perspectives and Plans at Congress' Economy Commission. 

(END) JJN/JJN/MVB

Published: 8/23/2017