Peru seen among world's fastest growing economies in 2014

Peru will remain one of the world's fastest growing economies this year, with GDP growth projected at 5.6 percent in 2014, according to global financial research firm BBVA Research.

Hugo Perea, chief economist for Peru at BBVA Research in Lima, said it will be important for the Andean country to maintain a growth rate of 5.6 percent despite external volatility.

"I don't see this as a negative growth rate, because the growth rates of 6-6.5 percent gained in the previous years resulted from exceptional situations and very favorable external conditions, such as cheap external financing and the rising prices of raw materials, as well as the growth in China," he noted.

Perea explained that international financial markets are returning to normal levels; and in this process, Peru continues to grow at a significant pace and will be one of the most dynamic economies in 2014.

The economist added that emerging economies have been affected by the beginning of withdrawal of monetary stimulus in the U.S., although some have been more affected than others.

"This suggests some differentiation in the emerging world, because the most affected economies are those with external and structural vulnerabilities and with a poor macroeconomic management, which was reflected in the exchange rate, interest rates and bond prices," he told Andina. "Investors will begin to differentiate between emerging economies with less vulnerabilities and those who have more weaknesses."

(END) LVT/EEP

Published: 2/4/2014