Deputy Economy Minister Hugo Perea on Tuesday reaffirmed Peru's economic activity will grow close to 4% in 2018, underpinned by the strength of domestic demand, due to both bigger fiscal boost and private investment recovery.
Concerning
private investment, Perea estimates it will expand 5.2% this year, thanks to
mining investment —with
growth projected at 19.4%— and non-mining investment, which is expected to post a 2.7% gain, the highest rate in five years.
It must be noted non-mining investment is projected to jump 6.2% between 2019 and 2022.
As for non-mining private investment, projects are concentrated in infrastructure, hydrocarbon, retail, and real estate industries.
Public finances
On the public financing side, Perea said the fiscal consolidation process has come ahead of time this year. Plus, a more gradual fiscal convergence path has been outlined.
The annual fiscal deficit stood at
2.2% of GDP as at July 2018 and is expected to reach 3.0% of GDP —less than the target (3.5% of GDP)— by the end of the year.
Also, the
fiscal deficit for 2019, 2020, and 2021 is projected to stand at 2.7% of GDP (target: 2.9% of GDP), 1.9% of GDP (target: 2.1% of GDP), and 1.0% of GDP, respectively.
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Published: 9/4/2018