Andina

IMF raises Peru 2019 growth forecast to 4.1%

13:32 | Lima, May. 23.

A special International Monetary Fund (IMF) mission —which recently paid a visit to the Inca country— has revised upwards its Peru 2019 GDP growth projection from 4% to 4.1%.

GDP is expected to expand over 4% in 2019, gradually reaching its potential, the delegation's preliminary report affirmed.

Likewise, given the increase in commodity prices and the Government's reform agenda, the staff has raised its forecast for Peru's potential medium-term growth from 3.75% to 4%.

According to the mission, strong domestic demand —especially greater private investment— should be the key factor for GDP expansion.

In this regard, the IMF projected Peruvian economy will increase 3.7% in 2018.

Rebound

The IMF representatives also pointed out the 3.2% GDP rise recorded in 2018's first quarter and the high-frequency indicators for April point to a rebound in the economic activity this year.

The increase in public investment is a key factor, whereas private investment is also expected to grow after four weak years, the organization said.

In addition, the mission stated Peru has been "one of the best countries in Latin America," in terms of economic growth. Yet, its economy has slowed down in recent times.

(END) CNA/JAA/MVB

Published: 5/23/2018
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