Andina

BCR: Peru's economy to grow above expectations in 4Q 2020

Photo: ANDINA/Diffusion

Photo: ANDINA/Diffusion

17:33 | Lima, Dec. 11.

The Central Reserve Bank (BCR) on Friday projected that the national economy will perform better than expected in the fourth quarter of the current year, considering the leading indicators of some productive activities.

"In the fourth quarter, the economy would be experiencing a smaller contraction than forecast by the Central Bank in the last Inflation Report, when a drop of 6.4% was expected; this decline will be significantly smaller," said BCR Economic Studies Central Manager Adrian Armas.

"For the fourth quarter, we are projecting that GDP contraction could be in the range of between 3.5% and 4% (...)," he added.


He indicated that the same pattern is being seen in the fourth quarter.

Favorable leading indicators

Armas said that the leading indicators continued to show improvements at a rate faster than expected. However, they still remain below their levels in the previous year.

Moreover, the BCR official explained that domestic cement consumption registered falls in March (-51%), April (-98.6%), May (-65.1%), June (-32.7%), and July (-4.5%), but recorded positive indicators in August (1.3%), September (9.7%), October (16.7%), and November (11.3%).

The economist also showed that electricity production gradually registered a smaller decline, considering that it fell in March (-27.4%), April (-30%), May (-25.4%), June (-12.4%), July (-5.9%), August (-2.8%), September (-1.9%), and October (-0.4%). In November, it only fell 0.3%.

(END) CNA/JJN/MVB

Published: 12/11/2020