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Peru: Private investment to grow 3.5% in 2018

COP20 Centro Financiero Lima San Isidro Surco

COP20 Centro Financiero Lima San Isidro Surco

08:00 | Lima, Aug. 15.

The Peruvian Government forecasts a 3.5% private investment growth rate in 2018 underpinned by greater construction and mining activity, Economy and Finance Minister Fernando Zavala informed.

"We are observing a shift in the private investment trend, and we project a 3.5% increase after flatlining for four years," he said. 

In this sense, he noted the Executive Branch seeks to jumpstart private investment through more than US$11 billion in investments, as well as to boost business confidence in the short term. 

Recovery

The cabinet member pointed to signals hinting at a private investment rebound: cement purchases are growing at a 3.5% pace, and capital good imports scaled up 18.9% in July. 

In addition, Zavala referred to the mining industry. Mining exploration investment saw a 49.1% annual expansion in June, whereas total mining investment —minus exploration— increased 6.2%. 

Business confidence 

Finally, the economist underscored business confidence has started to gain momentum following the drop triggered by devastating Coastal El Niño phenomenon disasters earlier this year. 

"We are yet to reach the confidence [level] recorded at the beginning of this administration. However, there are already signs pointing to an optimistic trend in business confidence," he pointed out. 

(END) DHT/MVB

Published: 8/15/2017
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