Andina

Peruvian economy to grow 4.1% in 1Q 2020

17:34 | Lima, Dec. 20.

The Central Reserve Bank (BCR) expects Peruvian economy to grow 4.1% in the first quarter of next year, boosted by primary sector recovery, BCR Governor Julio Velarde said on Friday.

According to the official, an expansion of 7.6% in the primary sector —during the first three months of 2020— is expected due to the strong expansion of the fishery sphere (40.7%).

"During recent days, the same fishery companies are reporting the presence of (anchovy) juveniles, so the season will be cut short. We expect lower growth in the fourth quarter of this year mainly due to the fishery sector," he expressed.

Likewise, Velarde projected that mining and hydrocarbons sector will show strong growth, mainly driven by the metal mining sub-sector (7.6%).

"In the first quarter, metal mining will basically grow due to production recovery at Las Bambas (mine), as well as to Toquepala (mine) expansion. Concerning hydrocarbons, we expect an important revitalization in the production at Block 95," he stated.

The official went on to add the farming sector will register significant growth figures based on greater sowing of agro-export products.

He also estimated that the non-primary sector will register a growth of 3.2% in the first quarter of 2020.

"With growth rates in the primary sector of 7.6% and 3.2% in the non-primary one, we expect an expansion of 4.1% for the first quarter," he emphasized.

Growth in the region

Lastly, he stressed that next year Peru will be the country with the highest growth rate in the region (3.8%), above those of Colombia (3.2%), Paraguay (3.1), Bolivia (3.0%), and Brazil (2.2%), Uruguay (1.3%), Mexico (1.1%), Chile (1.0%), Ecuador (0.3%), Argentina (-1.8%), and Venezuela (-11.2%).

(END) RGP/MVB

Published: 12/20/2019