CCL: Peru economy may expand 3.9% in 2018

COP20 Centro Financiero Lima San Isidro Surco

COP20 Centro Financiero Lima San Isidro Surco

13:21 | Lima, Jan. 3.

Peruvian economy may reach a 3.9% growth in 2018 due to the diversified expansion of sectors such as mining and construction, Lima Chamber of Commerce's (CCL) Institute of Economics and Business Development (IEDEP) projected Wednesday.

"Primary sectors will have outstanding performances in 2018," IEDEP Executive-Director Cesar Peñaranda expressed.

"The mining and hydrocarbons [sector] might expand up to 6.5%, considering this sector would operate in an environment with better terms of trade, which may expand by 8.2% and 2.8% in 2017 and 2018, respectively," he added. 

Likewise, the construction sector would reach a growth rate of 7.2% —the highest level in the past five years— driven by the execution of major infrastructure works that are included, for instance, in the Reconstruction Plan, whose budget totals US$7.4 billion for the 2017-2020 period.

Manufacturing and trade

On the other hand, the manufacturing sector is expected to increase 3.7% —the highest rate in five years— mostly explained by the acceleration of private consumption, which would boost the production of mass consumption goods.

According to IEDEP, the trade sector —linked to domestic demand— may also grow 3.1% mainly due to better performances of department stores and supermarkets.

Domestic demand

In addition, domestic demand is projected to expand 3.6% —the highest rate in the last three years— as a result of the broad-based recovery in each of its components.

Regarding private consumption, a 3.1% growth is estimated, supported by greater dynamism in labor-intensive activities such as services, trade, and manufacturing.


Published: 1/3/2018