Andina

Central Bank: Peru's GDP to grow above potential in 2019

08:00 | Lima, Feb. 14.

Peru's gross domestic product (GDP) will expand above potential in 2019, Central Reserve Bank's (BCR) Economic Studies Central Manager Adrian estimates.

He projects Peruvian economy will grow around 4% this year, thus exceeding its estimated potential of 3.7%.

It should be noted potential GDP enables growth without inflation

The BCR estimates that the product gap stood at 0.6 percentage points of last year's potential GDP and for this year projects a range between 0.3% and 0.6%. 

Business expectations

Some of the business expectation indicators for the next three months improved in January 2019 but all of them remained in optimistic territory, due to the economy's recovery in the fourth quarter of last year, Central Reserve Bank's (BCR) latest monthly survey revealed.

Likewise, most current situation indicators improved compared to the previous month. 

"This (the economic recovery in the fourth quarter of 2018) has resulted in favorable business expectations," Armas expressed.

(END) ECS/JJN/DTK/RMB

Published: 2/14/2019