Andina

FocusEconomics: Peru's GDP to grow 2.7% in 2017

COP20 Centro Financiero Lima San Isidro Surco

COP20 Centro Financiero Lima San Isidro Surco

08:00 | Lima, Aug. 9.

Peruvian economy will expand 2.7% this year, according to the latest FocusEconomics' Consensus Forecast LatinFocus August report released.

The rate is similar to that projected by the International Monetary Fund (IMF) last June.

FocusEconomics' analysts have thus moderated their 2017 growth projection for Peru by 0.1% from last month's estimate due to devastating floods and landslides that wreaked havoc in several Peruvian regions earlier this year. 

While economic growth was already expected to slow this year, the government's reconstruction plan and positive dynamics in the mining sector should help soften the slowdown. 

Real sector

Despite said downward revision, surveyed panelists highlighted the Inca country's real sector, which shot up by 3.4% in May.

Such result was driven by "double-digit expansion in manufacturing output together with growth in the fishing, telecommunications, transport and messaging, and commerce sectors."

Business sentiment

The report also revealed improvements in terms of business sentiment, as the business confidence indicator stood at 54.8 points in July, a 1.7-point rise over the June reading.

"Efforts to improve political conditions, which have been volatile since the beginning of the year in the wake of the Odebrecht corruption scandal and the onset of devastating floods, have helped boost business sentiment," the document reads.

Trade surplus

Lastly, FocusEconomics underlined Peru's trade balance, which recorded a US$582-million trade surplus in June and thus marked "an impressive 35.0% year-on-year."

In this sense, panelists participating in the LatinFocus Consensus Forecast projected a 12% increase in Peruvian exports this year, as well as a US$4.1-billion trade surplus.

(END) NDP/DHT/MVB

Published: 8/9/2017