Peruvian economy will expand 4% in 2018, thus becoming the highest growth rate in the last five years, Central Reserve Bank (BCR) has projected.
According to National Institute of Statistics and Informatics' (INEI) annual reports, Peru's GDP grew 2.35% (2014), 3.26% (2015), 4.00% (2016)
, and 2.50% (2017)
In this regard, BCR Governor Julio Velarde noted 2018 might represent the beginning of a high-growth phase
However, said situation
will depend on the recovery of business confidence, as well as the favorable mineral prices, which will have a positive impact on private investment
"Private investment might be higher in 2019
and 2020. It is expected to improve over time […]," Velarde expressed.
"If companies see that demand is increasing, they will have to invest in order to meet said demand, so we will enter into a positive cycle
that could be maintained for a long time," he underlined.
The BCR official also stated these winds —in favor of the domestic demand— would be joined by the good prices of Peru's main exported products, which may benefit the mining sector
"If these [mineral] prices
remain high, the mining sector might enter into a virtuous circle, which will invigorate other productive sectors," he concluded.