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Peru Central Bank raises public investment growth projections for 2017-18

Reconstrucción con cambios.

Reconstrucción con cambios.

13:23 | Lima, Oct. 20.

Central Reserve Bank (BCR) Governor Julio Velarde on Friday estimated Peru's public investment will expand 9.6% in 2017 and 16.4% in 2018.

Said rates are higher than those projected in BCR's September 2017 Inflation Report (7% and 15%, respectively).

During his participation in the Seminar titled Capital Markets, Banking & Finance Day 2017, he explained said upward revision responds to the strong momentum witnessed in public spending during September and October.

"Public investment —in its three levels— expanded 21% last September, and if public companies' figures are added up, said rate may reach 24%," Velarde said. 

"Public investment has expanded almost 29% so far in October," he added.

According to Velarde, September's positive results also contributed to the construction sector's expansion, thus leading to see a growth rate of close to 9%.

Private investment

On the other hand, the BCR Head stressed that private investment went up 7.8% last July and August.

Likewise, he added that non-mining investment experienced a growth of over 6% in the said period, whereas mining investment climbed 22%, "mainly driven by exploration investments."

(END) RGP/RGP/JAA/MVB

Published: 10/20/2017