13:00 | Washington (US), Oct. 4.
Peruvian economy will grow by 3.7% this year, thus leading expansion in the region, according to the International Monetary Fund (IMF) World Economic Outlook (WEO) - Subdued Demand: Symptoms and Remedies presented today in Washington.
"Unlike most of its peers, Peru is expected to grow faster this year and next, with growing rising to 3.7% and 4.1% in 2016 and 2017, respectively, on the back of expanding activity in the mining sector and higher public investement," the IMF economists' analysis reads.
The institution thus maintains its July projections for Peru's GDP, which shows an increase with respect to the 3.3% recorded in 2015.
As a result, the Inca nation stands out in Latin America's declining economy, as most of the remaining commodity exporters in the region (Colombia, Chile, Mexico) "will experience some deceleration in activity in 2016," according to the IMF survey.
Global growth
On the other hand, the Fund estimates global expansion will slow to 3.1% this year following "the June U.K. vote in favor of leaving the European Union (Brexit) and the weaker-than-expected growth in the United States."
Nevertheless, growth is projected to rise to 3.4% in 2017, driven by the recovery of main emerging market economies.
The report also highlights that progress made following the world financial crisis eight years ago is "uneven, and the crisis scars still quite visible."
Such precarious recovery threats with a persistent stagnation, particularly in advanced economies, which could fuel anti-trade and anti-migration sentiments.
In this respect, IMF Economic Counsellor and Director of Research Maurice Obstfeld said such restrictions would undermine growth, productivity and innovation.
“It is vitally important to defend the prospects for increasing trade integration,’’ Obstfeld, said. “Turning back the clock on trade can only deepen and prolong the world economy’s current doldrums.’’
(END) CNA/DHT/RMB
Published: 10/4/2016