Private investment cements position as Peru’s growth engine

Private investment may have grown about 8% in the second quarter of 2018, thus cementing its position as one of Peruvian economy’s growth engines, Deputy Economy Minister Hugo Perea affirmed Thursday.

This forecast coincides with the estimate given by Central Reserve Bank (BCR) a week ago.

In his speech at Peru CFO Summit, Perea explained private investment is recovering steadily, mainly due to a buoyant investment in mining and hydrocarbons.

This rise was explained by higher investments in expansions of Marcona and Toquepala, preliminary works at Quellaveco, expansions of Toromocho and Mina Justa, whereas hydrocarbon investments rebounded due to exploration investments at Blocks X and 88.

Mining projects

Over the past two months, two major projects have announced the start of works: the construction of Quellaveco (with an investment of about US$5 billion), and the expansion of Toromocho (with a US$1.3 billion venture).

These construction works are expected to start in the third quarter of this year.

Thus, investment’s favorable performance revives the virtuous circle of investment, employment, and consumption.

In this line, the generation of formal jobs increased by 3.8% between January and May, higher than the figure recorded at the end of 2017 (1.7%).

Additionally, imports of consumer goods grew 8.7% in the first half of 2018 from 8.3% in 2017.


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