Can Private Investment be Rekindled?

PERU - Forecast 07 Jul 2014 by Roberto Abusada

Executive Summary We believe GDP will recover mildly in H2, driven by recovery in mining production, and a slight improvement in investment growth. But it’s hard to envisage a major improvement this year, though the government’s new measures for cutting red tape, and other impediments to investment, will be welcome. We expect GDP to rise by about 4% this year, with fiscal spending unlikely to compensate for depressed investment and the slowdown in mineral experts in H1. For 2015-2017, we project growth at 5.5%, buttressed by mining, which is expected to double Peru’s cooper production. Priv...

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