Andina

Peru's non-mining private investment to rise at fastest pace in 5 years

15:08 | Lima, Sep. 4.

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.

"The dynamic economic growth in the first half of 2018 ensures an expansion of 4% for this year, which will help Peru maintain a leading position compared to other countries in the region," the official affirmed during the 3rd Forum Dialogues for Development, held by National Confederation of Private Business Institutions (Confiep).

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.

(END) JJN/JJN/RMB/MVB

Published: 9/4/2018