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IMF Recommends Peru Diversifies Its Economy As A Key To Raise Its GDP

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The head of the mission for Peru of the International Monetary Fund (IMF), Ravi Balakrishnan, said that the most important thing for the country is the development of new areas for growth, in order to raise the potential for expansion of the Gross Domestic Product (GDP).

According to an interview done by América Economía to Balakrishnan, he explains that the IMF has increased their projection on the growth of potential Gross Domestic Product from 3.8% to 4% in the medium term.

“Before we had a downward bias, now we believe that everything is more balanced. The recent indicators are good, with GDP growth of 3.2% in the first quarter of 2018, which is important; in addition, April indices point to a higher confidence and a rebound in economic activity”, he said to this media.

Balakrishnan also believes that public investment will play an important role in the construction and manufacturing sectors, as well as private investment.

“I think that consumption will have a good rhythm, with more investment and higher income. There is a strong link between the prices of commodities and economic activity, which generates a virtuous circle in that sense”, he said to América Economía.

The expert also mentioned that diversification is key to permanently increase GDP. “There are some sectors that have had an incredible performance, such as agro-industry, and we must try to develop other economic activities”, he said, adding that the forestry sector could have potential in Peru.

(Source)
(Cover Photo Pixnio)

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Ermelinda is a journalist from Caracas, Venezuela. She has a Master’s degree in Digital Journalism and has recently finished a technical degree in Veterinary Assistance because of her love for animals. She likes to do sports, but especially ballet, which she has practiced for more than 17 years. Her passion is to read, write, and blog about different topics, as well as travel whenever she can.