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BBVA: Peru economy to grow 4% in 2H 2019

17:06 | Lima, Jul. 18.

Peruvian economy will see 4% growth in the second half of this year compared to the same period in 2018, due to an increase in mining investment, BBVA Research estimated on Thursday.

Moreover, the gross domestic product in Peru will grow 2.9% year-on-year in 2019, one percentage point less than BBVA Research's previous estimate from three months ago.

However, the South American country is expected to witness an economic growth of 4% in 2020.

Remarks were made by BBVA Research Chief Economist Hugo Perea, who said this projection has a neutral bias.

According to Perea, mining investment is increasing and will see a 20% surge this year, thanks to the implementation of Quellaveco, Mina Justa, and Toromocho expansion projects. 

Likewise, both private and public investment are expected to achieve year-on-year growth rates of 3.9% and 0.5%, respectively, in 2019.

He went on to say US$1.1 billion will be spent on public investment this year, since an acceleration in Reconstruction with Changes is evident.

By 2020, public investment is estimated to increase around 10% and will be the main GDP growth driver, according to Perea.

(END) MDV/RMB/MVB

Published: 7/18/2019
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