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Peru: Domestic demand, private investment to boost GDP in 2019

08:00 | Lima, Mar. 9.

Peruvian economic growth will be underpinned by domestic demand and the significant recovery of private investment, Central Reserve Bank (BCR) Monetary Policy Manager Paul Castillo affirmed.

According to BCR's Inflation Report published in December 2018, the Inca country's GDP will expand 4% this year. 

Likewise, Castillo indicated the GDP growth recorded last year (4%) was driven not only by domestic consumption, but also by a rise in investments in various productive sectors such as mining. 

Furthermore, imports of capital goods posted a 3.8% rise in January 2019, which means private investment has a better perspective and domestic demand will continue to be GDP's growth engine this year. 

However, Castillo pointed out mining production slid 1.3% in the same month, due to lower production of gold and copper. 

Exports

On the other hand, the BCR representative mentioned non-traditional exports experienced an 8.1% increase last year, despite an average 6% fall in prices. 

"This is a very dynamic sector that creates lots of jobs," he expressed. 

Moreover, the agro-export sector has quickly added various products to its export basket, such as blueberries, which have had an important performance over the last years. 

(END) VLA/JJN/DTK/RMB

Published: 3/9/2019
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