Peru’s economy is projected to have expanded between 4.5% and 5% in January, an encouraging start to the year that will see a recovery in business and consumer confidence, Finance Minister Alfredo Thorne affirmed.
According to the National Institute of Statistics and Informatics (INEI), Peruvian economy grew 3.9% in 2016, more than the expected 3.8%.
"Based on recent results, I would say January's growth was closer to 5%," he predicted.
Public investment leads expansion
This growth was underpinned by public investment, which grew 14.6%, the highest rate since August 2016, and by increased primary production, mainly:
- Fishing, due to the good second fishing season, when the entire quota was virtually caught (129.3% in January).
- Hydrocarbons, due to major production of gas (22.5%) and natural gas liquids (59.1%).
- Mining, due to increased production of copper, zinc, and molybdenum.
Thorne said that even though January this year had two additional working days compared to 2016, the leading economic indicators trend confirms the increased economic dynamism.
Electricity production linked to non-primary sectors has sped up and grown 5.5%, the highest rate since February 2016.
Likewise, the registration of new light vehicles expanded by 14%, the highest rate since June 2014, reaching five months of continuous growth.
Whereas the registration of heavy vehicles, close to the dynamism of investment projects, rose 12.9% in January and reached two months of continuous growth.