Peru's Fin Min: Economy to grow 10% in 2021, highest rate since 1994

Photo: Courtesy

Photo: Courtesy

11:27 | Lima, Apr. 30.

The Ministry of Economy and Finance (MEF) on Friday presented the 2021-2024 Update Report on Macroeconomic Projections, which maintains the main forecasts for economic indicators, due to the fact that a progressive improvement in economic activities has been observed, which will continue consolidating as greater control of the pandemic is achieved and the vaccination process moves forward.

Thus, GDP growth projection is maintained at 10% for 2021, which would be the highest rate recorded since 1994, despite the strong contraction recorded in 2020 (-11.1%).

During the first two months, the economic activity was moderately affected by the second COVID-19 wave. However, the economy returned to the positive growth segment as of March, which is currently reflected in the good performance of the leading indicators.

On the other hand, imported goods volume increased 42.6% in March, associated with a generalized recovery in all areas, mainly intermediate inputs and capital goods, which reflects the increase in domestic demand.

In addition, sales registered on electronic invoices continued to increase. That was the case of commerce sector sales, which rose by 87% in March and accumulated nine months of consecutive growth.

For the 2022-2024 term, GDP growth projection is maintained at 4.5%, sustained by domestic demand, exports increase due to the startup of production at copper mines, external demand recovery, as well as the boost to competitiveness and productivity.

In this period, private investment would be boosted by the continuity in the execution of infrastructure projects such as Lima and Callao Metro Line 2, Jorge Chavez International Airport expansion, and Chancay Port Terminal development.

During this period, among other aspects, the startup of construction of prioritized works is expected under the Public-Private Partnerships (PPP) modality, mainly of projects to be awarded in 2021 (14 for a total amount of US$5.4 billion).


Published: 4/30/2021
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