Peru's Economy and Finance Ministry (MEF)
published on Friday the 2020-2023 Multiannual Macroeconomic Framework (MMM), in which a GDP growth of 3% is projected for 2019 and of 4.4% —on average— for the next four years, with a gradual path of acceleration from 4% in 2020 to 5% in 2023.
With this projection, Peru is expected to continue leading growth in the region, despite the adverse international environment.
"This acceleration will be mainly driven by the domestic demand reflected in the strengthening of public and private investment
, in addition to economic policy measures aimed at improving productivity and competitiveness in the country," Economy and Finance Minister Carlos Oliva said.
Growth in 2019
According to MEF, the review of economic growth for 2019 is mainly explained by the materialization of external risks foreseen in the April report, associated with the intensification of trade tensions between China and the United States, as well as by temporary supply shocks in the fisheries, mining
, and primary manufacturing sectors, which influenced the primary GDP to record a 3.1% fall.
"Despite the weak dynamism of the primary sectors, the non-primary component of GDP remained resilient and reached a growth rate of 3.3% in the first half of 2019," reads the publication.
"Likewise, private investment sped up from 2.9% in the first quarter to 5.1% in the second quarter."
"The economy is projected to continue speeding up in the coming months, driven by greater private investment, associated with the greater execution of infrastructure projects such as the Lima and Callao Metro Line 2 and the continuity of large mining projects such as Quellaveco, Mina Justa and the Toromocho expansion
," it added.
Furthermore, public investment will be recovered by a greater execution of the reconstruction works and the modernization of the Talara Refinery, in an environment of measures adopted to improve the execution of subnational governments.
These greater investments will allow the improvement of formal employment and family income.