Peru's economy will continue to grow during the second quarter of the year just as it did in the first three months, the Central Reserve Bank (BCR) projected on Tuesday.
"The result we expect for the second quarter of the year is similar to that of the first quarter, although slightly lower. But we are more optimistic about the second semester," BCR Governor Julio Velarde estimated.
Year-over-year, Peruvian GDP expanded 2.1% in the
first quarter compared to the same period in 2016, National Institute of Statistics and Informatics (INEI) data revealed.
While still early for Peru's May GDP forecast, the BCR chief anticipated positive indicators.
These include the electricity sector, which bounced back from a fall in April and grew 4%.
"In addition, early figures for durable consumer and industrial goods also hint at an increase, but it is still premature to give a [GDP] forecast for May," Velarde observed.
The release of BCR's economic forecasts, which will not differ much from those of the Economy and Finance Ministry, is slated for June 12.
Non-primary sector to boost GDP
In this context, Velarde estimated Peru's primary sector GDP would grow 6% in 2017 underpinned by mining.
Non-primary (manufacturing, services and construction) GDP growth was forecast at 2.1%.
Regarding non-extractive sectors, the central banker anticipated greater activity leading to a 4.3% expansion in 2018, to be followed by 5.2% (2019) and 5.4% (2020 and 2021) growth rates.
Primary GDP, on the other hand, is expected to slow down as of 2018.
"Thus, the [economic] rebound would be driven by increasing non-primary sector activity, in line with the growing domestic demand," he concluded.
Peru's Economy-Finance Ministry projected
3% GDP growth for 2017, 4.5% for 2018 and 5% for 2019.