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ECLAC: Peru remains among region's most dynamic economies

14:15 | Santiago (Chile), Dec. 12.

The Economic Commission for Latin America and the Caribbean (ECLAC) on Thursday projected that Peruvian economy will grow 2.3% this year and 3.2% in 2020, above the expected regional average of 0.1% (2019) and 1.3% (2020).

Thus, Peru will remain in the region's group of most dynamic economies, while it will hold the second position next year, after Colombia, which will report a 3.5% GDP increase.

However, in its "Preliminary Overview of the Economies of Latin America and the Caribbean 2019," it stated that the region shows a generalized and synchronized economic slowdown at the level of countries and sectors, completing six consecutive years of low growth.

"The macroeconomic panorama of the last six years (2014–2019) shows a tendency towards slowing economic activity, with falls in per capita GDP, investment, per capita consumption and exports, and a sustained decline in the quality of employment," it said.

In its latest annual report, ECLAC affirmed that the slowdown in domestic demand is accompanied by low external aggregate demand and more fragile international financial markets.

"Added to this scenario are the growing social demands and pressures to reduce inequality and improve social inclusion, which have emerged unusually forcefully in certain countries of the region," it noted.

Macroeconomic outlook

Therefore, the region's macroeconomic panorama over recent years shows a downward trend featuring a decrease in gross domestic product (GDP) per capita, a fall in investment, a decrease in per capita consumption, lower exports, and a sustained deterioration in the quality of employment.

All this will lead to 2019 in the region growing just 0.1% on average, while projections for 2020 will remain low, around 1.3% for the region as a whole.

(END) SDD/JJN/MVB

Published: 12/12/2019
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