Andina

Peru economy may have expanded above 5% in 2Q 2018

15:20 | Lima, Jul. 10.

The Peruvian economy is expected to have expanded above 5% in the second quarter of 2018, the highest level in 18 quarters, privately-run banking institution Banco de Credito (BCP) projected Tuesday.

According to its macroeconomic weekly report, Peru's economic activity continues its cyclical recovery stronger than initially expected.

Central Reserve Bank (BCR) estimated the economic activity expanded above 5% in May 2018, supported by an increase in the fishery sector (27%) and a rise in domestic cement consumption (8.3%).

As stated by BCP, available indicators for June suggest that Central Government's public investment has slowed down in real terms and electricity production grew 4.4% in June (2.9% in May).

Likewise, the bank informed that most business expectation indicators —revealed by BCR— moderated in June compared to May.

In this sense, BCP estimates BCR will maintain its reference rate at 2.75% on an annual basis for the remainder of 2018 and the discussion about the best time to raise next year's rates will start in the fourth quarter.

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Published: 7/10/2018