Andina

ECLAC: Peruvian economy to grow 3.8% in 2018

12:09 | Santiago (Chile), Dec. 20.

The Economic Commission for Latin America and the Caribbean (ECLAC) expects Peru's gross domestic product (GDP) to rise 3.8% in 2018, thus revising its economic growth forecast downwards from the 3.9% forecast in October.

According to ECLAC, the Inca country's GDP is expected to expand from 2.5% in 2017 to 3.8% this year, and then to 3.6% in 2019.

In terms of growth rate and compared to its South American peers, Peru is in fourth place, behind Bolivia (4.4%), Paraguay (4.2%), and Chile (3.9%).

Thus, its productive activity exceeds that of Colombia (2.7%), Uruguay (1.9%), Brazil (1.3%), Ecuador (1%), Argentina (-2.6%), and Venezuela (-15%).   

Latin America and the Caribbean

The economic growth projection for Latin America and the Caribbean in 2019 is 1.7%, slightly below what ECLAC released last October (1.8%), while the estimate for the current year (2018) was also trimmed to 1.2% (from the 1.3% forecast in October).

The United Nations regional organization unveiled its last economic report of the year, the Preliminary Overview of the Economies of Latin America and the Caribbean 2018, at a press conference led by its Executive Secretary Alicia Bárcena in Chile.

According to the document, the countries of Latin America and the Caribbean will confront a complex global economic scenario in the coming years, in which less dynamic growth is expected, both for developed countries, as well as for emerging economies, along with increased volatility of international financial markets. 

On top of this, there is a structural weakening of international trade, aggravated by trade tensions between the United States and China.

The greatest risk to the region's economic performance in the run-up to 2019 continues to be an abrupt deterioration in the financial conditions for emerging economies, the report adds. 

During 2018, emerging markets, including Latin America, showed a significant reduction in external financing flows, while at the same time sovereign risk levels increased and their currencies depreciated against the dollar.


(END) CNA/RMB/MVB

Published: 12/20/2018