Private investment in Peru grew 7.1% in the third quarter of the year, thereby showing a positive trend, Central Reserve Bank of Peru (BCR) has reported.
Peru's gross domestic product (GDP) expanded 3% during the third quarter of 2019 —the highest rate so far this year— because of a rise in domestic demand (4.1%), led by an increase in private investment and public consumption (6.6%).
The surge in private investment —whose expansion rate is the highest in a year (8.7% in the second quarter of 2018)— was a result of greater dynamism in the execution of mining and non-mining projects.
"This progress was primarily reflected in increased imports of capital goods and higher domestic consumption of cement. In this quarter, mining investment grew 19% over the same period in 2018," the bank stated.
Furthermore,
BCR reported that private consumption expanded 3.3% in the third quarter of 2019, similar to the growth seen in the same period a year earlier, in the context of restoration of consumer confidence and formal employment, as well as strong credit growth.
Meanwhile, public consumption increased 6.6% —its highest rate since the fourth quarter of 2017— which is associated with increased purchases of goods and services by the central and local governments.
On the contrary,
public investment remained at the same level as that of the same period last year.
Moreover, investment by the central government and public companies has increased in this quarter, but was offset by lower investment of local governments.
(END) CNA/JJN/RMB/MVB
Published: 11/28/2019