Andina

Peru's economic revival to benefit from China's rapid recovery

16:57 | Lima, Jun. 11.

The accelerated growth of Chinese economy —which is expected for the second half of the current year and 2021— will favor the recovery process in Peru and other Latin American countries after being affected by the COVID-19 pandemic, Credicorp Capital Solutions Portfolio Chief Klaus Kaempfe said.

"The growth expectations for Peru and Chile come from the recovery of the Chinese economy and, probably, higher commodity prices, which we are already starting to see in the case of copper," he expressed.

This way, the Credicorp officer expects raw material prices to be maintained or continue to increase from now thru the end of the year, which will trigger new investments in copper production by large companies that normally invest in Peru and Chile.

"That is very good news for Andean countries in general because a large part of our exports have to do with commodities," he stressed.

Kaempfe also commented that the forecasts for copper production will not necessarily materialize this year "but they do give us good investment expectations for the future."

"The copper they use (in China) goes largely to their domestic economy and not so much to exports," he explained.

(END) SDD/JJN/MVB

Publicado: 11/6/2020