Andina

Peru's economic growth exceeds expectations, forecast could be raised

16:00 | Lima, Jul. 15.

Economy and Finance Minister Waldo Mendoza on Thursday affirmed that Peru's economic activity is almost back to pre-pandemic levels, considering the GDP growth figure for May this year.

"The gross domestic product (GDP) has grown 48% in May this year from May 2020, but that is not a good comparison because the performance in May last year was quite bad. Therefore, the 48% rate should not be treated with exaggeration," the minister said.

"But, if we compare May this year with May 2019 —a regular year— the decline has been very small; that is to say, in May 2020, the Peruvian economy has already produced almost as much as it did in May 2019. We are on the right track," he added.

Mendoza believes that Peru's economic recovery has surpassed the Government's expectations, and the figures prove it.

"In the first quarter of this year, the growth rate was the same as that of the first quarter of 2019, which was a regular year. The May figure —reported by the National Institute of Statistics and Informatics (INEI) on Thursday— confirms the good performance of the economy," he explained.

The government official highlighted the strong recovery in construction and fishing sectors in May this year.

"The construction sector grew 20% compared to May 2019, which is a very high rate. The same is occurring with fishing, but this is not the case for mining or oil yet," he remarked.

Projections

The Cabinet member reiterated that the Ministry of Economy and Finance (MEF) expects a 10% increase in GDP for this year, while the Central Reserve Bank (BCR) expects a 10.7% GDP growth rate.

(END) CNA/JJN/RMB/MVB

Published: 7/15/2021