Miguel Palomino, director of the Central Reserve Bank (BCR), believes current international conditions set the stage for economic growth to strengthen this year but is wary of possible political instability.
During an interview with El Comercio, Miguel Palomino stated that for the first time, the whole world is growing simultaneously. He exemplified the economies of emerging markets which are improving. Palomino highlighted that this dynamism in the world will be very favorable for Peru this year.
He specified that the BCR’s growth estimate was 4.2%, however, he explained that this depends on the political circumstances that must be controlled by the authorities to keep us at a rate of 3% or 4%. On the factors that could boost the country’s economy, Palomino said he believes there will be another mining boom that will be boosted by the recovery of the construction sector in 2018 and 2019.
Although political controversy caused at the end of the year is expected to impact the mining market especially during the first quarter, if political stability is granted to international investors, there is a great chance of another “mining boom” that boosts Peruvian economy this year.