The World Bank estimates Peru will expand 3.8% this year and will be one of the fastest-growing economies in South America, according to its latest report titled "
Global Economic Prospects: Darkening Skies."
"Despite recent declines in industrial metals prices, growth among some large metals exporters has continued to show resilience like Chile, Mongolia, and Peru," the multilateral entity indicated.
Growth above regional average
Growth estimates for Peru are higher than those for Latin America in 2018 (0.6%) and 2019 (1.7%).
"Growth in Latin America and the Caribbean (LAC) stalled at a subdued 0.6% in 2018, substantially weaker than previously projected. The disappointing growth outcome reflected softening global trade growth and tighter external financing conditions," the World Bank explained.
In this regard, the bank estimates Bolivia was South America's most dynamic economy in 2018, with GDP growth of 4.5%, followed by Paraguay (4.0%), Chile (3.9%), Peru (3.9%), Colombia (2.7%), Uruguay (2.7%), Brazil (1.2%), Argentina (-2.8%), and Venezuela (-18%).
According to the intergovernmental organization, Bolivia is expected to grow 4.3% this year, followed by Paraguay (3.9%), Peru (3.8%), Chile (3.5%), Colombia (3.3%), Brazil (2.2%), Uruguay (2.1%), Argentina (-1.7%), and Venezuela (-8.0%).
Impact on commodities
The World Bank explained the commodity price performance affected Latin American economies.
"The
decline in copper prices in the second half of 2018 contributed to slowing growth momentum in Chile and Peru, after an acceleration in the first half," it stated.
By 2020, a strengthening recovery in Brazil, modestly accelerating growth in Mexico, and solid performance in Chile, Colombia, and Peru are expected to help push regional growth to 2.4%, consistent with potential.
(END) MDV/RMB/MVB
Published: 1/9/2019