Peru Revises Growth to 5%

Peru’s economy will grow by 5% next year instead of 4.8% as previously forecast by the government, President Pedro Pablo Kuczynski said in an interview with a local newspaper published on Monday, Reuters reported. “I don’t believe in those forecasts that say we’re going to grow 4.2% or 4.4%” next year, Kuczynski was quoted saying in the financial daily Gestion. “There’ll be a reactivation of private investment here.” The central bank revised its 2017 growth forecast down to 4.3% from 4.5% last week as it trimmed its outlook for private spending in Peru, a global minerals exporter. The economy grew by a weaker-than-expected 2.12% in October, compared with the year-earlier month, dragged down by a drop in government infrastructure spending that prompted a steep contraction in construction. The president told Gestion that his government would help boost construction by building 40,000 homes for low-income households with the private sector. Kuczynski’s office did not immediately respond to requests to confirm the accuracy of the quotes.