Analysts have picked up on signals pointing to a private investment recovery in Peru, expected to rebound significantly in the second half of 2017, business management consultant EY Peru affirmed on Wednesday.
"Signs of
recovery have started to surface in the private sphere, as well as signs of coming —much faster—
investments in the second half of the year," EY Peru Country Managing Partner Paulo Pantigoso said.
While projecting a rise in
private investment, the EY Peru executive does not see figures topping the Central Reserve Bank’s (BCR) negative forecast for 2017.
"However, in terms of comparison, the second semester will be better than the first," he anticipated.
Private investment has been in the red in Peru for the past three years —2014 (-2.3%), 2015 (-4.4%) and 2016 (-6.1%)— following the country's last positive reading in 2013 (+6.5%).
In this sense, BCR's latest Inflation Report expects a 1.8% drop this year, before a 5.3% comeback in 2018.
Pantigoso also pointed to a growing demand for services which, along with stronger
business confidence, are poised to fuel private investment.
Projected investments
The EY Peru representative noted BCR estimates at least US$25 billion in investments per year, distributed in different sectors like infrastructure, mining, manufacturing and services.
"Telecommunications investment of all operators, for instance, is estimated at US$2.5 billion-US$3 billion a year."
However, Pantigoso underlined such private sector recovery will be largely determined by public investment, which plays a bigger role in driving the economy nowadays.
(END) CNA/JJN/DHT/MVB