Andina

IMF raises Peru growth forecast for 2018 to 4%

11:18 | Washington D.C. (U.S.), Jan. 25.

The International Monetary Fund (IMF) has raised its Peru growth forecast for 2018 from 3.8% to 4%, according to the World Economic Outlook: January 2018, released Thursday.

"In Peru, growth showed signs of recovery in the second half of 2017. In 2018, a broad-based expansion in domestic demand is expected to drive growth up to around 4%," IMF indicated.

It must be noted IMF kept Peru's 2018 growth projection unchanged at 3.8% in October 2017, from its previous forecast in July of the same year.  

"Exports should remain robust, but their contribution would be more modest than in the last two years given that new mining projects reached nearly production capacity in 2017," the multilateral organization stated.
 
"On the policy side, the authorities remain focused on implementing countercyclical fiscal and monetary policy and structural reforms. The planned fiscal impulse in 2018 will be key to achieving a growth rebound," it added.

According to the Fund, Peru's economic activity in 2019 is projected to be 4%, making it one of the best-performing economies in Latin America this and next year.

Latin America

On the other hand, economic activity in Latin America and the Caribbean is forecast to accelerate further to 1.9% in 2018 and 2.6% in 2019.


(END) CNA/RMB/MVB

Published: 1/25/2018