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FocusEconomics: Peruvian economy expands in 2Q 2018

COP20 Centro Financiero Lima San Isidro Surco

09:00 | Lima, Aug. 8.

Peru's economic growth likely surged in the second quarter of 2018, marking the second consecutive quarter of accelerating GDP growth, the latest FocusEconomics' LatinFocus Consensus Forecast report stressed.

"Economic activity continued to increase at a strong pace in May (6.43%) following April's five-year high (7.81%), on the back of expansions in the agriculture, fishing and manufacturing sectors," it highlighted.

According to FocusEconomics, recently released data shows that credit to both businesses and households kept growing robustly in June, suggesting a continued solid economic performance.

Moreover, in the same month, public investment spending jumped by a fifth in annual terms, although the fiscal deficit narrowed for the fourth consecutive month, benefiting from surging tax revenues.

However, in mid-July, the political scenario was shaken by a judicial scandal following leaked phone conversations in which judges appeared to illicitly negotiate promotions and criminal sentences.

This led President Vizcarra to replace his justice minister, while the head of the Judicial Branch resigned in mid-July.

Although the government has promised a comprehensive reform of the judiciary in response, a protracted judicial crisis could undermine political stability and hit foreign investment, it warned.

Note: Information provided by FocusEconomics.

(END) NDP/DTK/MVB

Published: 8/8/2018

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FocusEconomics: Peruvian economy expands in 2Q 2018

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