Peruvian economy would have risen to 9.5% in September of this year

During September of this year, the Peruvian economy would have grown between 8 and 9.5%, said the central manager of Economic Studies of the Central Reserve Bank (BCRP), Adrián Armas.

“From January to September of this year, a higher level would be shown compared to the same period of 2019. Peru will be one of the few economies in the region to register that the GDP for the year will be higher than the level in 2019, if these indicators are maintained”, He said during the presentation of the BCRP’s Monetary Program.

It is worth emphasizing that the official data on the evolution of the gross domestic product (GDP) in September of this year will be published next Monday, November 15 by the INEI, however, Armas points out that the ninth month of this year would reach higher levels prior to the pandemic.

Likewise, he recalled – after Julio Velarde’s statements about an eventual growth of the economy of 13.2% at the end of 2021 – that said exercise is explained because the seasonally adjusted GDP reached 101.7 points in August, and because “all the indicators indicate that the economy will grow more than the 11.9% projected ”.

“Taking into account this evolution, it is clearly an upward bias of what we have with respect to the GDP growth projection for 2021,” he stressed.

Reduction of the fiscal deficit

Arms reported that the reduction in the fiscal deficit – reduced to 4.1% of GDP during October – will shrink faster than expected.

“In fact, it is possible that Peru is one of the few countries in the region where a greater reduction in the fiscal deficit is observed. This is important because it gives more confidence to the markets and leads to a lower country risk ”, he explained.

The BCRP official noted that the reduction in the fiscal deficit is due to the higher tax collection due to the higher level of economic activity in our country. “It is highly probable that in December (date of the last BCRP report) if this trend continues, there will be a downward revision in the projection of the fiscal deficit for 2021,” he concluded.