Economy and Finance Ministry (MEF) estimated that Peru's domestic demand went up 4.4% during the first quarter of 2018.
The claimed dynamism contrasts
domestic demand's performance in the same period of 2017, when it appears to have contracted 0.5%, according to information spread by the Ministry.
This significant expansion contributed to a recovery in tax revenues during the first quarter of the year (13% in real terms), according to MEF's latest report on macro-fiscal rules.
Rebound effect
According to the Ministry, dynamic domestic demand in Jan-Mar this year may have been caused by a rebound effect, a better performance in the construction sector over 2017, and a clearer perspective, private-run Peruvian Economy Institute (IPE) General Manager Diego Macera pointed out.
Additionally, he continued, private consumption is estimated to have grown 3% in the first three-month period of 2018, which is relevant because it accounts for more than 60% of the country's GDP.
(END) MMG/RMB/MVB
Published: 5/4/2018