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IMF upgrades 2018 growth forecast for Peru to 3.8%

Estadio Nacional, Via Expresa, Ministerio de Defensa,Javier Prado, Centro Financiero, Viviendas, Construcción, Campo de Marte, Trebol de Javier Prado, Miraflores Surco

Estadio Nacional, Via Expresa, Ministerio de Defensa,Javier Prado, Centro Financiero, Viviendas, Construcción, Campo de Marte, Trebol de Javier Prado, Miraflores Surco

17:03 | Lima, Jul. 25.

The International Monetary Fund (IMF) has raised its forecast for Peru's 2018 economic growth to 3.8%, a minimal —yet positive— change from its 3.7% projection in April.

In his article "Latest Outlook for The Americas" published Tuesday, IMF Western Hemisphere Director Alejandro Werner anticipated Peruvian GDP would be among the highest in the region next year.

Likewise, IMF's forecast for this year is unchanged from its 2.7% June estimate. 

"In Peru, after a slow start to 2017 —due largely to the impact of the Odebrecht corruption scandal and El Niño-related flooding and landslides— higher public investment is expected to produce more dynamism in the coming months, with growth to close the year at 2.7 percent and further accelerate to 3.8 percent in 2018," the post reads. 

The Fund also highlighted Peruvian authorities' "fiscally-led countercyclical policy stance" to address reconstruction needs following the said Coastal El Niño disasters, which are mainly financed by "buffers saved in the Fiscal Stabilization Fund."

(END) NDP/CNA/JJN/DHT/MVB

Published: 7/25/2017
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