Peru: Diversification, domestic demand stabilize GDP and attract investments

Peru’s product diversification and domestic demand strengthening enable a greater economic stability and potential to attract new investments, Standard & Poor’s (S&P) Analyst Livia Honsel affirmed Monday.

“We have seen a good domestic demand growth, especially during the first half of 2018. There should always be economic diversification as well,” she expressed.

“I think it is positive if economic matrix and growth are diversified, from both the supply and demand sides, since it provides the country with greater stability,” Honsel told El Peruano official gazette.

According to Central Reserve Bank of Peru’s (BCR) latest Inflation Report, domestic demand registered low growth rates in 2016 (1.1%) and 2017 (1.4%), while it recorded a significant boost during the first (4.3%) and second quarters (6.2%) of this year, thus it could end the year with a 4.4% increase.

However, exports performed differently. They registered high rates in 2016 (9.4%) and 2017 (7.8%), and then slid in the first (2.8%) and second (3.5%) quarters of 2018.

Therefore, exports are estimated to close the year with a 3.5% rise.

The analyst indicated the Inca country’s dependence on mineral exports —namely of copper— should not be considered a significant weakness. Other growth components have been detected since the economy continues its diversification and investment stands high.


Fuente: Andina

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