Peru's current account deficit decreased to 1.2% of GDP, down 1.3 percentage points from the same period in 2016, Central Reserve Bank (BCR) informed.
The current account deficit has declined for seven straight quarters, mainly driven by higher volumes of
mining exports and the improvement in prices.
Moreover, the said deficit continued to be financed by long-term external capitals to the
private sector.
The external financing flow increased to 7.9% of GDP, due to higher disbursements of long-term loans and the issuance of external bonds by private sector firms.
Surplus in trade balance
On the other hand, the current account result reflected an increased
surplus in the trade balance, going from US$750 million in the third quarter of 2016 to US$1.692 billion in the same period this year.
This rise in trade flow was explained by improved terms of trade (8.7%) and higher export volumes (4.9%).
(END) MDV/RMB/MVB
Published: 11/24/2017