Andina

Peru: Private investment may have grown 5% in 1H 2018

08:00 | Lima, Jul. 19.

Peru's private investment may have expanded 5% in the first-six-month period of 2018 due to a sharp recovery in the national economy, which has embarked on a new growth cycle, Central Reserve Bank (BCR) Governor Julio Velarde estimated Wednesday.

"Private investment dropped over 14 quarters. It started to recover in the second half of last year, and it must be growing at rates of around 5% in this half-year. We expect it to continue expanding," Velarde affirmed.

"Domestic demand is strong. Consumption, as well as public and private investment, is increasing," he added.

In this regard, the BCR head explained shopping centers' sales rose 8.4% in the first quarter of 2018, and 8.7% in the second one.

"Mining investment is increasing, the implementation of new projects is expected to be announced. Non-mining investment has also been growing," he noted.

According to Velarde, Peruvian economy is currently experiencing a cyclical upturn, as it begins to expand following a slowdown period.

"That (recovery) has been driven by global growth, the rebound in public investment that is delayed, and the Central Bank's monetary policy (…)," the official pointed out.

(END) MDV/JAA/MVB

Published: 7/19/2018