Credicorp Capital Chief Economist Daniel Velandia on Wednesday affirmed that the project portfolio, the demographic bonus and the penetration potential of the financial system constitute strengths of the
Peruvian economy.
"We are still optimistic about Peru in the medium and long term because it has many strengths that other countries lack," he said in a presentation titled "Current Situation and Economic Outlook: On the road to a gradual recovery with several obstacles."
In the case of the project portfolio, Velandia explained there is a significant long list of investment initiatives in mining, infrastructure, energy, among other sectors.
"However, besides having such list, it is important to ensure its implementation. Failure to do so could result in a weakness," he explained.
Young population
Moreover, the economist stressed the fact that Peru has one of the youngest populations in Latin America.
"The median age of its population is two or three years below the average age in the region. This means Peru still has a demographic bonus," he emphasized.
Velandia explained that workforce is the biggest contributor to GDP growth in an economy.
"Therefore, the demographic bonus helps Peru boost its economic growth," he added.
Access to financing
Finally, the Credicorp Capital representative highlighted as a strength of the Peruvian economy the penetration potential of its financial system.
"The financial penetration rate is still low in Peru, compared to other countries in the region (…)," he commented.
Published: 8/5/2020