Private consumption has been one of the drivers of economic growth in Peru through the first two decades of the new millennium, marking a consecutive growth in the past 20 years.
According to
Central Reserve Bank of Peru, private consumption achieved the following growth rates in 2000 (2.5%), 2001 (1%), 2002 (4.9%), 2003 (2.5%), 2004 (3.4%), 2005 (3.7%), 2006 (6.2%), 2007 (8.6%), 2008 (8.9%), and 2009 (3.1%).
Private consumption also expanded in 2010 (9.1%), 2011 (7.2%), 2012 (7.4%), 2013 (5.7%), 2014 (3.9%), 2015 (4%), 2016 (3.7%), 2017 (2.6%), 2018 (3.8%), and 2019 (3%).
"Peruvian economy has enjoyed a long period of growth, which has been consistent over the past 20 years, although not at the same pace, thereby translating into more jobs and poverty reduction. Therefore, families spend more,"
BBVA Research Head Francisco Grippa expressed.
"Added to this is the development of the financial system, because of an increased penetration of financial products and services, and increased access to loans. All this underpins family expenditure, that is, private consumption," he added.
The economist explained that private consumption is the most important component of
GDP (when calculated based on expenditure), thus making up between 60% and 65% of the Peruvian economy in a year.
Forecast for 2020
The BBVA Research has recently projected that Peruvian economy will record a growth rate of 3.1% this year and of 3.5% in 2021, underpinned by a recovery in primary sectors, mainly mining production, and higher public spending.
(END) CNA/JJN/RMB
Published: 2/24/2020