The Economic Commission for Latin America and the Caribbean (ECLAC) revised upwards Peru's economic growth forecast from 3.5% to 3.6% for 2018, taking into account last April's projection.
"The first quarter of 2018 saw some recovery in activity, backdropped by a relatively calm and swift handover of power to the
new President (Martin Vizcarra)," the Economic Survey of Latin America and the Caribbean 2018 pointed out.
According to
ECLAC, this estimate is based on an expansive fiscal policy on public works spending (reconstruction in the country's northern region, Pan American Games infrastructure, Talara Refinery renovation, and Lima Metro Line expansion, among others), although it is not immune to risks of under-execution.
Moreover,
private investment recovery is expected due to external demand and the rising trend in
export commodity prices. Monetary policy should also remain expansionary, thus neutralizing a rise in international interest rates, as well as boosting credit growth to foster
private investment and consumption.
Among other South American countries, Peru's economic growth expansion projection of 3.6% holds the fourth place, right behind Paraguay (4.4%), Bolivia (4.3%), and Chile (3.9%), ECLAC indicated.
Furthermore, Peru's growth forecast surpasses the ones of Colombia (2.7%), Uruguay (2.3%), Ecuador (1.5%), Brazil (1.6%), Argentina (-0.3%), and Venezuela (-12%).
Latin America and the Caribbean
This is the result of downward revisions for other countries, such as Argentina, Venezuela, and Brazil.
(END) CNA/DTK/MVB