The head of European asset allocation research at Barclays, Guillermo Felices, said the worst is over for the Peruvian economy and predicts a recovery in the GDP driven by the implementation of major mining projects.
"The mining sector slowdown is due to lower demand, but I see interesting mining projects that will expand mining operations in the short term, which would provide the country the necessary support to foster its economic growth," he noted.
He also said the government’s financial challenges should aim at covering the macroeconomic aspects in order to ensure the economy is not seriously affected by the looming difficult international context.
In this regard, Felices stressed Peru has solid economic foundations to mitigate the impact of China’s slowdown, the end of cheap credit in the United States and the depreciation of the Peruvian nuevo sol against the surging US dollar in the international exchange markets.
“In addition to rising international reserves, the country’s economic fundamentals are very strong. Basically the aim is to manage the macroeconomic challenges and the government is working on it," he pointed out.
(END) RGP/ASH/RMB
Published: 10/20/2014