Andina

Peru: BCR projects 2.3% private investment recovery in 2024

11:50 | Lima, Jun. 23.

Central Reserve Bank (BCR) Governor Julio Velarde indicated that private investment recovery is expected this year, featuring a 2.3% growth compared to 2023.

"This year, we do expect a recovery in private investment; we are projecting that mining investment will grow 6.4%, non-mining investment will grow almost 2%, and total private investment will grow 2.3%," Velarde explained in detail.

This was stated during the presentation of 2024's second Inflation Report on Friday.

"If we observe the investment that fell the most last year, which was the residential one, we are now expecting growth to be almost zero; after having declined 13.3% last year, it would decline 0.4% this year; (thus,) it would practically neither grow nor decline; we anticipate a slight recovery for next year," he indicated.

Regarding mining investment in U.S. dollars, Velarde pointed out that the forecast for 2024 is higher than last year.

In that sense, Velarde indicated that mining investment worth US$5.6 billion is projected for 2025 —higher than that expected for 2024 (US$5.3 billion) and above the almost US$5 billion registered in 2023.

"Non-mining investment is obviously also growing, and we have estimated total private investment worth almost US$50 billion this year," he added.

Public investment

On the other hand, the BCR governor indicated that a 12% growth in public investment is expected for 2024, largely underpinned by subnational governments which in 2023 —being their first year in office did not spend as much.

"Now, they (subnational governments) are spending more and boosting public investment growth," he pointed out.

(END) MDV/MVB

Published: 6/23/2024