Post-disaster reconstruction works planned by the Peruvian Government will provide a boost to consumption and investment in the construction sector, The Economist Intelligence Unit (EIU) projected.
"This will depend on how extensive the country's reconstruction plan —to be announced by the Executive— is […], and how well said plan is implemented," EIU analyst Fernando Freijedo affirmed.
"If so, consumption and construction will be invigorated by the country's reconstruction," he added.
Productive activity
Regarding the Inca nation's economic development, Freijedo anticipated a 3% growth rate at the end of the year "based on the performance of public and private investment."
While such forecast includes the government's Economic Stimulus Plan launched in March, it does not consider the potential set of reconstruction-related measures due to the lack of solid data.
"We could revise our projection upwards once we get official information," he observed.
Expectations
It is worth noting national businesspersons' —from central, southern and eastern regions— company product demand and personnel recruitment expectations improved in the first quarter of the year, according to the Central Reserve Bank (BCR).
In this sense, the EIU analyst anticipated BCR may eventually cut its monetary policy rate to support economic activity, a right move considering domestic demand's performance.
Economic snapshot
National production posted 2.75% accumulated growth in the first two months of the year, as well as 3.57% in the last twelve months (March 2016-February 2017), according to the National Institute of Statistics and Informatics (INEI).
Last February, Peru's fishing industry grew 30.59% driven by greater catches of direct human consumption (27.85%) species.
From this sum, a large fraction (69.14%) was frozen, 53.75% canned and 0.07% fresh.
Similarly, the telecommunications and other information services sector saw an 8.8% rise underpinned by increasing Internet and cable television services.
(END) DOP/MDV/DHT/MVB