IDB: Peru economy to expand 4% in 2018

08:00 | Lima, Jul. 24.

Peruvian economy will grow 4% —or above— in 2018, within a regional economic recovery scenario, the Inter-American Development Bank (IDB) projected.

Excluding Venezuela, the financial institution estimated all IDB-borrowing countries will see a positive growth this year, nine of which will expand higher than 3.5%.

According to the 2018 Latin American and Caribbean Macroeconomic Report titled "A Mandate to Grow," the Dominican Republic, Nicaragua, Panama, and Peru are "expected to grow at 4% or higher."

"The United States, Europe, and China —all major trading partners for Latin America and the Caribbean— have recently had their growth forecasts revised upwards," the document indicated.

Likewise, the world economy is expected to grow 3.9% by year-end, "a level not seen since 2011 and highly synchronized across countries."

In this sense, no less than 185 nations —out of a total of 193— will experience positive growth. Plus, at least 80 economies are expected to post growth rates above 3.5% in 2018.

The report also forecast the U.S. economy will increase 2.7% this year, approximately 0.2% higher than the January 2017 estimate, while the Eurozone is set to grow at 2.2%, a 0.3% rise from last October's projection.

"In the case of China, growth is expected at 6.6% for 2018, a little less than the 6.8% of 2017, which ended on a surprisingly strong note," the report said.

On the other hand, the IDB noted "Latin America and the Caribbean need to boost potential growth. The good news is that there are ways to enhance growth rates."

The presentation of the document was led by economist Andrew Powell, co-author of the book with Eduardo Cavallo. It took place at Central Reserve Bank (BCR) headquarters in Lima. 


Published: 7/24/2018
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