After 14 quarters of consecutive falls, private investment has grown by more than 4% in the third quarter of 2017, according to estimations by the Ministry of Economy and Finance(MEF).
During the first quarter of this year, Peru was defined as the fastest-growing economy in Latin America. Later on this same year it was found to be performing even better than expected. And now it seems to be the time for private investment.
Claudia Cooper, head of the MEF, said that this is confirmed by the leading indicators such as imports of capital goods that grew 9,8% between July and September while cement consumption expanded more than 2,5% in the third quarter.
The MEF highlighted that one of the sectors behind the acceleration of private investment is in the mining sector which grew 21,9% between July and August due to increased investment in exploration of some companies with projects that would begin constructing in the next few years.
The expansion of the mining sector in the period of analysis would be stimulating other sectors, according to the MEF. Such is the case of the sale of heavy vehicles like buses and trucks that grew 17,1% in September, which is driving this commercial segment. And it also has invigorated non-primary manufacturing linked to investment such as metalworking and construction materials.
“From now on, this recovery will continue in line with improved business expectations,” said Minister Cooper.
Construction sector grows
According to the Economic Research Department of the Bank of Credit of Peru (BCP), in September the Construction sector accelerated and grew 8.9%.
With this result, it is expected that the sector could grow around 10% in the fourth quarter of 2017 and also in the first quarter of 2018 motivated by higher public spending. It is worth pointing out that construction grew in July by 3.8% and 4.8% in August.