Andina

Peru economy may grow nearly 4% in 3Q 2018

Centro Financiero.Foto: ANDINA/Carlos Lezama

Centro Financiero.Foto: ANDINA/Carlos Lezama

13:00 | Lima, Jul. 17.

Peruvian economy might expand around 4% between July and September 2018, thus maintaining national GDP's dynamism, privately-run Scotiabank Peru estimated Tuesday.

"We forecast the economic activity will maintain its upward trend over the third quarter (of 2018), but at a lower rate, close to 4%," said Pablo Nano, chief of Real Economy at Scotiabank's Department of Economic Studies.

According to the analyst, this projection is based on a moderate growth of primary sectors, boosted by specific factors in the second quarter of 2018, such as a higher anchovy quota and a low comparison base from the similar period last year due to Coastal El Niño phenomenon.

"Nevertheless, we foresee the gradual acceleration of sectors linked to domestic demand will be maintained, as long as the recovery in private and public investment continues," he noted.

On the other hand, Nano remarked leading indicators for June 2018 point to a growth rate lower than those recorded in April (7.8%) and May (6.4%).

However, Peru's GDP may have expanded close to 6% between Abril and June 2018, the highest quarterly figure since the fourth quarter of 2013.

May

According to Scotiabank, Peruvian economic activity maintained its dynamism last May, which would reflect private and public investment recovery, as well as private consumption's gradual acceleration.

"Although May's GDP growth rate (6.4%) was not as high as that of April (7.8%), it was greater than the expected 5.4% (…)," Nano underlined.

It must be noted this result was mainly explained by the good performance of primary sectors —particularly the farming sector (+14.8%). 

(END) CNA/JAA/MVB

Published: 7/17/2018