The International Monetary Fund (IMF) kept Peru's 2017 and 2018 growth projections unchanged at 2.7% and 3.8%, respectively, the multilateral institution revealed in its latest report.
Also, IMF expects inflation to reach 3.2% this year, thus ending the year above the Central Reserve Bank's (BCR) target range (1%-3%). Nevertheless, the Fund projects an inflation rate of 2.3% in 2018.
, IMF raised its forecast for Peru's 2018 economic growth to 3.8% from its 3.7% projection in April this year.
Likewise, the Fund foresaw the country's growth would hit 2.7% in 2017. "In Peru, after a slow start to 2017 —due to the impact of the Odebrecht corruption scandal and Coastal El Niño phenomenon
— higher public investment is expected to produce more dynamism in the coming months, with growth to close the year at 2.7%," the post reads.
In such month, IMF underscored the fiscally-led countercyclical policy adopted by Peruvian authorities.
Such stance was taken to address reconstruction needs following the said Coastal El Niño disasters, which are mainly financed by the Fiscal Stabilization Fund.