BCR: July, August indicators to improve business confidence in Peru

15:45 | Ica (Ica region), Sep. 19.

The favorable economic indicators of July and the preliminary ones of August can help improve expectations and business confidence, BCR Monetary Program Department Chief Fernando Perez affirmed on Thursday.

Within this framework, the official indicated that the international situation has affected business confidence. However, Perez said that a global economic recovery is expected next year.

Likewise, he stressed that capital good imports and domestic cement consumption have improved.

There is a recovery in public investment, too, and this trend will continue towards 2020.

He also mentioned that Consensus Forecast expects Peruvian economy to grow 3% in 2019 and 3.6% in 2020.

According to the BCR official, Peru's average growth stood at 5% in the last 18 years, whereas inflation reached 2.6%. These figures are better than those registered in other countries of the region.

Furthermore, the economist noted public debt is 25% of GDP, and Net International Reserves stand at 27% of GDP.

Moreover, Perez affirmed the international turbulence must be addressed. Plus, he confirmed that the nation is prepared for external shocks.

"We haven't used the reserves yet," the official expressed.

"For the moment, an expansionary monetary policy (currently underway) is convenient, which is consistent with the global situation," he added.

It must be noted the new BCR projections will be published on September 27.

(END) JJN/DTK/MVB

Published: 9/19/2019