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BBVA Research: Peru's economy to grow 3.1% in 2020

00:00 | Lima, Jan. 24.

Privately-run BBVA Research has projected that Peruvian economy would register an expansion of 3.1% in the present year and 3.5% in 2021 —supported by the recovery in primary sectors, mainly mining production and higher public spending.

According to the "Peru Economic Outlook - First quarter 2020," the improved performance of private sector spending will contribute to these results.

"For 2021, we are expecting an improved performance of private spending in an environment in which major investment projects will be developed, Lima's International Airport expansion will be accelerated. We will see the work execution at Chancay Port Terminal, and Lima Metro Line 2. These are three important projects that should improve employment generation, and hence consumption," BBVA Research Chief Economist Hugo Perea remarked.

Likewise, Perea said business confidence will remain around its neutral level, with a potential improvement after the concluded electoral process. 
 
"This scenario assumes that possible weather anomalies will have a limited impact, in macroeconomic terms," the officer expressed. 

With regards to external factors, BBVA Research's projections include the recent United States-China trade agreement, which reduces uncertainty at the global level, although they warn protectionism will remain in place.

In addition, it considers that central banks will continue with the current expansionary wave in their monetary policies.
 
This environment will favor a soft landing for global growth and mitigate downside risks. Thus, metal and oil prices will remain relatively stable within the projection horizon.


(END) MDV/MTS/MVB

Published: 1/24/2020
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