BBVA Research Chief Economist Hugo Perea affirmed that the worst of the pandemic's economic effects is over, and that economic activities will start returning to normality in the second half of the year.
Perea remarked that the
BBVA Research macroeconomic projections' baseline scenario suggests that there will be no major outbreaks of the virus that may result in new harsh, widespread, and lengthy isolation measures.
"The worst is likely over, if there are no major outbreaks of the virus," he said during the presentation of the
Peru Economic Outlook.
In this context, the economist noted that the relaxation of isolation measures will continue to favor the gradual resumption of operations in different productive sectors.
"The high-frequency indicators show a relative improvement in the economic activity over recent weeks, in the general context of (economic) weakness," he stated.
"The economic improvement in the second half of 2020, however, will not prevent GDP from contracting this year. Said decline is expected to range between -18.0% and -12.0%," he predicted.
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Published: 7/17/2020