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Country Economic Forecasts > Peru

  • July 2017
  • 8 pages
  • Oxford Economics
Report ID: 1907628

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Activity in the Peruvian economy picked up further in May. But the improvement was far from broad-based, with some sectors continuing to perform poorly, notably construction. The latter reflects the repercussions of corruption scandals that have led to the paralysis of some important infrastructure projects. In addition, the fiscal stimulus plan has been delayed and the labour market is still weak. Looking ahead, we expect activity to accelerate on the back of more accommodative monetary and fiscal policies and improvements in the country's terms of trade. But, notwithstanding the more promising outlook, a weak start to the year has prompted us to cut our GDP growth forecast for 2017 to 2.5%, from 3.0% previously.

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