Andina

Peru economy may have expanded 4% in 2018

17:07 | Lima, Feb. 6.

Peruvian economy might have reached a 4% expansion in 2018, underpinned by private consumption, which made up almost two-thirds of the total, Peruvian Institute of Economy (IPE) informed Wednesday.

The latest report from the National Institute of Statistics and Informatics (INEI) revealed the Inca country's GDP posted an increase of 3.84% in Jan-Nov last year and 3.62% in the last 12-month period (Dec 2017-Nov 2018). 

On the other hand, Central Reserve Bank's (BCR) latest inflation report estimated Peru's economy may have grown 5.1% in December last year. 

Public and private investment 

IPE General Manager Diego Mareca pointed out public investment saw a strong increase of two digits, although, it was lower than projected. 

Likewise, he underlined private investment's performance was much better than the one recorded in previous years. 

2019

Furthermore, Mareca projected Peruvian economy will expand around 4% this year, driven by the mining sector, which currently benefits from major project start-ups. 

Competitiveness 

In addition, the economist highlighted the Government's efforts to close competitiveness gaps. 

"That is extremely positive. Now, we have to wait a bit to see what happens with the competitiveness plan, which should be finished around mid-year," he told Andina news agency. 

"There is no need to wait for the entire labor reform to see improvements. Small reforms can be carried out," IPE representative concluded.  

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Published: 2/6/2019