April 28, 2018 / 8:42 PM / 10 months ago

Peru cuts 2018 growth estimate to 3.6 pct, ups 2019's to 4.3 pct

LIMA, April 28 (Reuters) - Peru cut its 2018 economic growth estimate to 3.6 percent from a previous estimate of 4.0 percent, the government said in its Macroeconomic Projections Update Report on Saturday, while increasing its 2019 growth forecast to 4.3 percent.

The earlier government estimate of 2019 gross domestic product growth had also been 4.0 percent. In 2019 the economy is expected to benefit from an anticipated increase in public investment and higher prices for the metals the country exports.

According to the report, public investment should grow by 17.5 percent this year as the country tries to rebuild northern areas hard hit by floods in 2017. For next year, the planned expansion in public investment is 9.0 percent, the report said.

Peru is expected to have a trade surplus of $7.56 billion this year and $7.09 billion in 2019, the report said.

“Prices of raw materials we export have been revised upwards, due to greater global demand, the perception of lower physical supply of the minerals and the uncertainty generated by geopolitical risks and the commercial measures that the United States government seeks to adopt,” the report said.

“In the case of copper, the perception of greater interruptions in production and the supply deficit will boost its price,” it added.

Besides copper, Peru’s exports also include gold, silver and zinc.

Reporting by Teresa Cespedes, writing by Hugh Bronstein Editing by Susan Thomas

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