The growth of Peru’s gross domestic product (GDP) is set to go up more than three times higher than the regional average with an annual expansion rate of 4 percent, the brokerage firm BCP Securities
Walter Molano, analyst at the United States-based investment bank, noted the Latin America and the Caribbean is slowing down at an alarming pace.
“Latin America is projected to see GDP growth of 1.2 percent this year, which is the half of the growth achieved in 2013 and one fifth which was recorded in 2010,” he noted.
In this regard, the senior BCP Securities official went on to point out the economies of Venezuela and Argentina remain in outright recession; while Brazil and Mexico hold a flat behavior.
Meanwhile, he said Chile and Peru, traditional stars of the region, are likely to grow at a rate of 2.5 percent and 4 percent, respectively, he said.
He estimated that Colombia would grow 5 percent this year, due in large part to the large influx of foreign direct investment (FDI) and trade reforms ongoing peace negotiations.
Nonetheless, he warned the construction sector would wreak havoc in the future, due to the easy availability of long-term mortgages; while the signs of a consumption bubble proliferate and eventually the country could face a "hangover".
(END) JJN/JJN/LOG
Published: 9/18/2014