The International Monetary Fund (IMF) estimated on Monday that Peruvian economy will expand 3.7% this year and such growth is projected to stabilize at around 4.0% in the medium term.
Downside risks remain prominent, including lower commodity prices, continued trade tensions, and low implementation of public investment.
"Growth is projected to stabilize at around 4.0% in the medium term, with robust private domestic demand offsetting a gradual fiscal consolidation," he said.
Headline inflation is expected to remain within the
Central Bank's target range of 1%-3%.
Latin America and the Caribbean
Economic activity in Latin America and the Caribbean remains sluggish. Real GDP is expected to grow by 0.6% in 2019 —the slowest rate since 2016— before rising to 2.3% in 2020.
The weak momentum reflects negative surprises in the first half of 2019, elevated domestic policy uncertainty in some large economies, heightened US-China trade tensions, and somewhat lower global growth.
(END) NDP/RMB/MVB
Published: 7/29/2019