Peru's Central Reserve Bank (BCR) Governor Julio Velarde has informed Peruvian economy might reach a 4.9% growth rate in the fourth quarter of 2018, compared to last year.
This outcome will be underpinned by a greater public investment, within the framework of a
cyclical recovery.
According to the official, economic activity regained momentum in the second quarter of 2017.
Public and Private Investment
"Public investment has already started to recover. The third quarter had negative results, but we are expecting public investment to expand 21% in the fourth quarter," the BCR representative expressed.
Likewise, he indicated
private investment has registered a recovery —since last year's third quarter— after having fallen for 14 consecutive quarters.
"
Private investment's growth has been maintained this year. This is important," Velarde said.
Investment forecasts
Furthermore, the Governor pointed out investment for 2019-2021 is forecast to reach US$28 billion, mainly in
mining (US$14.690 billion), infrastructure (US$6.026 billion), hydrocarbons (US$2.213 billion), electricity (US$1.592 billion), industrial (US$806 million), and other (US$2.732 billion) sectors.
Additionally, private consumption has been boosted by better labor market conditions, while the financial sphere has shown clear signs of great dynamism.
Therefore, Peru's GDP is projected to increase by 4% in the next two years,
driven by domestic demand —especially private investment and consumption.
Business confidence
On the other hand, business confidence expectations improved in November 2018, compared to the previous month, BCR surveys have reported.
Remarks were made during an Americas Society/Council of the Americas' conference.
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Published: 12/7/2018