Peru's GDP growth looks set to strengthen this year, benefiting from a firmer domestic economy and a better showing of the external sector, the FocusEconomics' LatinFocus Consensus Forecast report has affirmed.
"Looser monetary and fiscal conditions should underpin the expansion, while modest inflation and healthy wage growth will likely sustain household spending," it expressed.
Business confidence
The business confidence indicator rose from December's 51.0 points to 53.0 points in January. Thus, the indicator moved further above the 50-point threshold that separates pessimism from optimism, and logged the best print in nine months.
According to FocusEconomics, January's increase reflected a broad-based improvement in the index's sub-components.
Expectations on the general economic situation in the next 3 months got rosier, as did businesses perceptions of the conditions of the sector in the next 3 and 12 months as well as the outlook on the company's financial situation and on the demand for the company's products in the same time horizons.
Meanwhile, expectations on the general economic situation in the next 12 months remained unchanged.
Panelists expect fixed investment to grow 3.1% in 2020, which is up 0.3 percentage points from last month's forecast. For 2021, panel participants see investment growing 3.8%.
Editor's note: Based on information provided by FocusEconomics.
(END) NDP/RMB
Published: 2/18/2020