According to the latest report of the Peruvian Institute of Economy, next year will be prosperous.
Indicators say that 2018 will be a better year for the economy than 2017. Some expectations for 2018 are higher mining investment and the recovery of non-mining investment. On the other hand, public investment grew 5%, the highest rate in more than a year, which resulted in the recovery of national and local government investment. There are also expectations for an increase in demand in other sectors.
It is important to mention how much exports have grown thanks to free trade agreements.
A great example is a consolidation between European countries and Peru with exports that have increased consistently. Inflation was 2.04%, the lowest in seven years.
However, the working market still needs to be reactivated. Despite growing 100,000 jobs every year, more than 300,000 people enter the market causing an over-saturation of labor. Job creation is expected to pick up in the first quarter of 2018.
Despite positive indicators, next year will bring regional and municipal elections, so the effects of the economic reconstruction the government will only be seen by 2019.
President Pedro Pablo Kuczynski said that 400,000 jobs have been created this year.
Do you think 2018 will be a good year for Peru’s economy? What did you expect from 2017?
(Cover Photo Archive)