Peru is taking a step forward in terms of development, and its GDP will expand over 3.9% in 2018 given the current favorable conditions, Moody's Sovereign Risk Group Vice-President Jaime Reusche estimated.
"I'm pleased because this could be the first time —in three years— we are going to revise our projection upwards, after three years of downward revisions," he said in a panel discussion hosted by Andina news agency and El Peruano official gazette.
Moody's senior analyst explained a turning point was reached over the past months, in terms of private investment
, which has grown 7% underpinned by greater public investment.
Reusche pointed out this situation shows private, mining and non-mining investments are going hand-in-hand with public investment
, which has finally started up.
"The Peruvian economy is about to enter into a virtuous circle. This is a relatively exciting moment," he stated.
"An interesting situation can arise in the following months, as we are moving towards a sustainable growth scenario of 4%, hand-in-hand with private investment
," Reusche noted.
He went on to add Peru's growth potential —which stands at 4%— is one of the top growth rates in the region.
"Nevertheless, we have to be careful and seek reforms that will ensure a potential, relatively-high expansion," he underlined.
On the other hand, the analyst underlined Peru is one of the fastest-growing countries this millennium.