Peru's private investment has entered a recovery phase and is estimated to have grown more than 4% in the third quarter of 2017, following 14 quarters of consecutive falls, Economy and Finance Ministry (MEF) reported.
Peru's economic recovery was boosted by such rebound and higher public investment in August 2017. Plus,
non-primary GDP increased 2.6%, one of the highest rates under the current government.
According to the National Institute of Statistics and Informatics (INEI), Peru's
GDP saw a 2.28% rise last August, up 1.6% over July's reading, thus marking 97 months of consecutive growth.
Peruvian economy expanded 2.20% in the Jan-Aug period this year and 2.60% over the past 12 months (Sep 2016-Aug 2017).
Said figures are in line with MEF's projections for 2017 (2.8%).
Non-primary GDP
August growth was mainly underpinned by a pickup in non-primary GDP, a segment linked to business investment and household consumption, which went up 2.6%, one of the highest rates since Mr. Kuczynski took office (3% in August 2016).
Primary GDP
On the other hand, primary GDP grew merely 0.4%, due to the end of the fishing season and lower production of lemons, bananas, hard yellow corn and asparagus.
According to Economy and Finance Minister Claudia Cooper, August's outcome was explained by greater investment in public works and the
recovery of private investment, in a favorable international context.
Likewise, estimations show non-primary GDP will continue growing in the coming months.
Public works
The volume of implemented public works expanded 23.8% in September, the highest figure registered since August 2016, and accumulated a 15.2% growth in the third quarter of the year.
Private investment
The cabinet member pointed out Peru's private investment has entered a recovery phase and is expected to have increased over 4% in the third quarter, after 14 quarters of consecutive falls.
"For instance, capital goods imports rose 9.8% during the third quarter of 2017, the highest growth rate since the fourth quarter of 2012," she said.
According to Cooper, cement consumption expanded over 2.5% in the third quarter, the highest increase since the fourth three-month period of 2014.
"One of the sectors supporting private investment acceleration is mining, which climbed 21.9% between July and August, driven by stronger exploration investment," the minister pointed out.
Moreover, the government official underscored that said dynamism contributes to other sectors.
For example, sales of heavy vehicles such as buses and trucks grew 17.1% in September.
(END) JJN/JJN/JAA/RMB
Published: 10/17/2017