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ECLAC: Consumption, investment contribute to Peru's GDP growth

12:18 | Lima, Oct. 18.

Peru's 2018 economic growth forecast rose from 3.6% to 3.9% driven by greater consumption and private investment's dynamism in the second quarter of the year, Economic Commission for Latin America and the Caribbean (ECLAC) informed.

"(…) Peru's GDP growth in the second quarter was better than expected," ECLAC Economic Affairs Officer Cecilia Vera told El Peruano official gazette. 

"During this quarter, the GDP experienced a year-on-year growth of 5.4% (the highest rate since late 2013), and rose 3.4% until June," she added. 

According to Vera, exports' contribution to economic expansion has increased, and growth was achieved in most sectors. 

"We believe the economic increase will continue this year underpinned by diverse factors," the officer pointed out. 

Continuous dynamism 

The ECLAC representative indicated private consumption should remain dynamic since low inflation supports real wages, employment has improved steadily since the second half of 2017, and the formal wage bill has been rising as well (almost 8% YoY until July). 

Furthermore, private sector credit registered a 7.5% annual increase in real terms until August, and public investment will contribute to economic growth this year as well, Vera concluded. 

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Published: 10/18/2018