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FocusEconomics: Peru's GDP to grow 3.9% in 2018

COP20 Centro Financiero Lima San Isidro Surco

COP20 Centro Financiero Lima San Isidro Surco

08:17 | Lima, Nov. 8.

Peruvian economy will expand 3.9% next year, according to the latest FocusEconomics' Consensus Forecast LatinFocus November report released.

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

"Our panel forecasts GDP expanding 3.9% in 2018, which is unchanged from last month, and expects growth of 3.8% in 2019," it noted. 

According to FocusEconomics' analysts, economic activity should gain steam next year, thanks to greater mining production, supportive fiscal and monetary policies, plus stronger private consumption growth. 

However, the economy remains exposed to volatility in global commodity prices.

Outlook stable

Economic growth appears to have firmed up in the third quarter, on the back of a recovery in the construction and mining sectors. Economic activity sped up in August, benefiting from strengthening external demand, especially for metal exports.

The construction sector also contributed notably to the acceleration, supported by the scaling up of public infrastructure spending, which had disappointed in the first half of the year. 

According to preliminary data released by the Statistical Institute, the same trend continued in September: The mining sector expanded on buoyant overseas orders and the construction sector recorded the fourth consecutive month of expansion. 

Moreover, business and consumer sentiment are improving, carried by the upturn in economic conditions.

"Together with October data signaling another month of strong annual growth in public infrastructure spending, this bodes well for growth in Q4," it also forecast.

(END) NDP/RMB/MVB

Published: 11/8/2017