Andina

FocusEconomics: Peru's growth to firm up in 2019

11:36 | Lima, Dec. 8.

Peru's GDP growth should firm up next year, underpinned by a solid domestic economy and healthy external demand for commodities, the latest FocusEconomics' LatinFocus Consensus Forecast report projected.

"Improving investor confidence, solid credit growth, and a favorable business environment, coupled with rising infrastructure spending, will likely buttress fixed investment," it expressed. 

In addition, continued job gains and rising wages in the private sector should sustain consumer spending

Moreover, large international reserves should shield the country from possible capital flight, while healthy public finances should give fiscal policy some room for maneuver. 

FocusEconomics panelists see GDP expanding 3.8% in 2019, unchanged from last month's forecast, and 3.7% in 2020.

In October, credit continued to expand robustly, the agriculture, and fishing sectors recorded outstanding performances, plus public investment rebounded sharply from the previous month as reflected by an outstanding year-on-year expansion.

On the fiscal front, recent data shows that the 12-month rolling budget deficit in October was 2.2%. 

Although it widened slightly from September's 2%, it remained comfortably under the 3.1% level reached at the beginning of the year, thanks to soaring tax revenues.

Editor's note: Based on information provided by FocusEconomics.

(END) NDP/DTK/MVB

Published: 12/8/2018