Peru Economy Grew 3% in Nov.

Peru’s economy probably grew “somewhat under” 4% in all of 2016 and it is “highly likely” that November’s year-on-year monthly expansion was above 3%, central bank economist Adrian Armas said.

The benchmark interest rate that the Central Reserve Bank has held at 4.25% for 11 straight months still reflects an expansive monetary stance, Armas told reporters, pointing to a real interest rate of 1.3% that is below its view of a 2% neutral rate, CNA reported.

“Indicators point to a pickup of over 3% in November’s gross domestic product figures,” Armas, the head of the BCR Economic Studies Department said.

Primary GDP is expected to have improved in November 2016, since data suggest an increase from October last year.

According to October estimates, the 2016 GDP growth rate is expected to have reached 4%, but the economic recovery trend underway remains unchanged.

“It (GDP growth) reached 2.4% in 2014, 3.3% in 2015, and will be slightly less than 4% in 2016, but is expected to be 4% or more this year,” he pointed out.

Whatever the forecast for this year, he continued, the economy and finance ministry, BCR, international organizations and local agents expect a significant expansion of the economy.

“This will be a year of remarkable growth for Peru because the market expects that, given its macro-economic stability, inflation under control and sound public finances,” he continued.

According to Armas, economic agents believe Peru’s efforts are geared towards increasing GDP potential with recovery measures taken by the government.