Andina

Peru: Mining investment up 37% in 1Q 2019

12:12 | Lima, May. 28.

Mining investment in Peru registered a 37% expansion in the first quarter of 2019, privately-run Banco de Credito (BCP) has informed.

According to BCP's Macroeconomic and Market Weekly Report, the influx of capital to the mining sector continued to increase at double-digit rates for the sixth quarter in a row. 

Likewise, private investment rose 2.9% in the analyzed period. However, non-mining private investment slid 0.5%, the third quarter to consecutively post a slight decrease. 

External sector 

On the external side, BCP reported good and service exports expanded 1.6%, while good and service imports declined 0.5%. 

On the other hand, trade balance registered a US$1.2 billion surplus in the first quarter of this year, a lower amount compared to the US$1.9 billion recorded in 2018. Thus, it reached US$6.5 billion in annualized terms (2018: US$7.2 billion).

Furthermore, BCP's Economic Studies Department reaffirmed its stance on economic growth. 

"If the GDP rises only nearly 2.5% in the first half of this year, it must register rates close to 5% in the second one to reach our 3.7% projection for this year," it expressed. 

In this sense, the institution considered this forecast is challenging, within the framework of a trade war and lower global growth. Therefore, BCP's Economic Studies Department might revise downwards this year's projection in its next quarterly report in June. 

(END) SDD/DTK/MVB

Published: 5/28/2019