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Moody's: Peru's well-diversified, investment-led economy boosts stable growth

09:17 | New York (U.S.), Jul. 2.

Peru's real GDP will rise 3.7% this year and 3.9% in 2020, down slightly from 4% in 2018, becoming one of the strongest growth outlooks in the region, after Panama, Moody's Investors Service has forecast.

According to the credit rating agency, Peru's economic growth —in 2018— was largely supported by greater construction activity, led primarily by public investments, and to a lesser extent, rising private investment consumption and internal demand.

It went on to add the Inca country's economic growth in 2019 and 2020 will be largely supported by a recovery in private investment, which will underpin a faster rate of capital formation and strong domestic demand that had begun in 2018.

Moreover, planned microeconomic reforms tied to the national competitiveness and productivity plan —if implemented— could increase potential growth above 4%.

Stabilized economic growth, rising internal demand, and climbing employment levels —together with rising investments and improving households wages— will all fuel banks' lending growth.

"Corporate confidence is widely above consumer confidence, and continues to rise, showing significant approval of the government (...)," it concluded.

Editor's note: Based on information provided by Moody's.

(END) NDP/DTK/MVB

Published: 7/2/2019

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Moody's: Peru's well-diversified, investment-led economy boosts stable growth

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