Andina

The Economist: Private investment, consumption to boost Peru's GDP

10:35 | London (U.K.), Dec. 27.

The Economist Intelligence Unit has estimated Peru's real GDP will grow 3.7% in 2018.

According to Research Analyst Abhijit Surya, the Inca country's private consumption has been strong amid improved labor market conditions. 

Likewise, he pointed out private investment —especially in the mining sector— has performed very well this year.

The Economist Intelligence Unit recently revised down its GDP estimate for 2018 to 3.7%, from 4.1% previously, due to the slowing of growth in the third quarter. 

"Although we expect a better result in the fourth quarter, it will be against a higher base of comparison," the officer expressed.

In 2019, The Economist Intelligence Unit expects growth to stay at around the same level of 3.7%, owing to Peru's strong macroeconomic fundamentals.

Furthermore, the analyst indicated private consumption and private investment are once again expected to do very well.

"Investment in the mining sector will be strong owing to a global supply deficit of key metals like copper," he said.  

Moreover, Surya stated mining investment tends to have a significant multiplier effect, as it generates employment in related industries.

(END) NDP/DTK/MVB


Published: 12/27/2018