For over a decade the Peruvian economy is booming producing impressive growth rates. But even though growth rates declined over the past years due to a decelerating world economy, and here for Peru especially important the slowdown in China, Peru’s top trade partner, declining metal prices and weaker domestic demand, the country still has one of the highest GDP growth rates in Latin America and worldwide.
A moderate domestic demand, the startup of new mining projects in combination with rising mineral export volumes and the constant recovery in global demand suggest that Peru will continue to grow constantly. Additionally, Peru’s president just returned from his State visit to China, where he successfully opened new market opportunities and encouraged more investment.
So it comes to no surprise that Peru’s Central Reserve Bank (BCR) maintains its GDP growth rate forecast at 4% for 2016. BCR’s Governor Julio Velarde is optimistic about Peru’s economic future.
Peruvian GDP development
The development of the GDP growth in Peru from 2003 to 2018
(2016 - 2018 are estimates)
During the introduction of Peru’s September Inflation Report last Friday he additionally announced that “Peru’s economy will be the fastest growing of all South American nations in 2016 and 2017, supported by increasing private investment, which is on its way of recovery and will expand 5% next year”. The BCR estimates that Peru’s economy will grow by 4.5% in 2017 and 4.2% in 2018.