Andina

FocusEconomics: Peru's GDP growth projection remains at 2.7% for 2017

COP20 Centro Financiero Lima San Isidro Surco

COP20 Centro Financiero Lima San Isidro Surco

08:00 | Lima, Sep. 13.

Peruvian economy will expand 2.7% this year, according to the latest FocusEconomics' Consensus Forecast LatinFocus September report released.

This rate is similar to the one projected by the same organization last month.

"Our panel forecasts GDP expanding 2.7% in 2017, which is unchanged from last month's estimate, and expects growth to accelerate to 3.9% in 2018," it noted.

On the other hand, Prime Minister Fernando Zavala noted Peruvian economy will grow 2.8% this year and 4.0% in 2018.

2Q 2017

According to FocusEconomics' analysts, the economy accelerated in the second quarter of 2017, expanding 2.4% year-on-year, which marked an upturn from first quarter's disappointing 2.1%, but still paled in comparison with last year's robust performance.

Improved domestic demand was the key driver, with a notably slower pace of contraction in investment and government spending.

Critical infrastructure projects —that were halted due to the Coastal El Niño phenomenon and the Odebrecht corruption scandal— resumed operations. Thus, business confidence strengthened in August.

On the other hand, growth in exports moderated last July despite rising copper and fishmeal exports.

Peru's ruling administration is confident that its recently-approved Multiannual Macroeconomic Framework (MMM) 2018–2021 —which prioritizes public investment— will revive the economy.

"Growth should pick up on the back of the ongoing recovery in mining and infrastructure investment into next year, underpinned by the adoption of a countercyclical fiscal policy," it also forecast.

(END) NDP/MVB

Published: 9/13/2017