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Peru: Fin Min estimates domestic demand grew 4.4% in 1Q 2018

14:57 | Lima, May. 4.

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.

"The first quarter of last year witnessed the Coastal El Niño weather phenomenon and the Odebrecht scandal (related events)," Macera told Andina news agency.

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
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