Peru's Fin Min: Economy to grow 11.5% in 2021

Photo: ANDINA/Ministry of Economy and Finance of Peru

10:57 | Lima, Dec. 31.

Economy and Finance Minister Waldo Mendoza on Thursday affirmed that Peru's productive activity is recovering faster than anticipated, adding that construction, mining, commerce, and industry sectors will drive a greater GDP expansion in 2021.

In an interview published in El Peruano official gazette, the minister agreed with BCR's growth projection of 11.5% for 2021 —a higher number than the one predicted by the Multiannual Macroeconomic Framework (10%). 

"(…) I am very optimistic about 2021, in part because the Peruvian economy is recovering faster than we all thought, but also because the global economy will recover faster than expected and due to the high prices of raw materials," he expressed.

Likewise, the government official indicated that export prices —for various reasons— are favorable to the South American country. 

The Cabinet member went on to add it is possible that Peru's economy will grow in 2021 as much as it fell this year (11.5%).

"In the case of Peru, which is a small and open country, what happens around the world does matter to us. If the world recovers, then Peru will be driven by this global recovery," Mendoza expressed.

Furthermore, the minister pointed out that the sectors —which contracted strongly this year such as commerce, tourism, and industry— might probably guarantee the economic growth in 2021.

"The debt has been managed responsibly and will remain that way, even amid a health emergency. The pandemic shock contracted GDP and worsened the financing needs to face a crisis; it has caused a greater ratio of debt/GDP. However, it is still below that of most countries in the region," he said.


Published: 12/31/2020
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