Andina

World Bank projects Peru's growth rate at 7% in 2021

00:00 | Washington D.C. (U.S.), Jun. 9.

The World Bank forecast that Peruvian economy will see strong growth of 7% in 2021 and will experience one of the fastest recoveries in Latin America after the impact of COVID-19.

Therefore, Peru's growth will be higher than that of Uruguay (4.6%), Colombia (3.6%), Ecuador (4.1%), Chile (3.1%), Mexico (3%), Brazil (2.2%), Bolivia (2.2%), and Argentina (2.1%).

The only countries that will record higher rates of GDP growth in 2021 are St. Lucia (8.3%) and Guyana (8.1%).

The June 2020 edition of the Global Economic Prospects report states that economic conditions in Latin America and the Caribbean (LAC) have worsened dramatically as the effects of the COVID-19 pandemic have rippled through the region.

In the outlook for this year, the World Bank forecast that the Peruvian economy will shrink 12%, and projects a GDP contraction in the other countries of the region, such as Brazil (-8%), Mexico (-7.5%), Ecuador (-7.4%), Argentina (-7.3%), Bolivia (-5.9%), Colombia (-4.9%), and Chile (-4.3%).  

"Outbreaks in the region have recently spread rapidly, and the economic impacts of nationwide business closures and mobility restrictions have been sudden and severe," the World Bank stated.

Besides, it explained that the sharp fall in global commodity prices has been a headwind for much of the region, particularly for oil and gas producers.

"The abrupt economic slowdown in the United States and China has disrupted supply chains for Mexico and Brazil and caused a sharp drop in exports from commodity producing economies such as Chile and Peru," the international body pointed out.

It also noted that the plunge in tourism, on which Caribbean countries and Mexico depend heavily, has likewise had negative impacts.

(END) MDV/RMB/MVB

Published: 6/9/2020