Peruvian economy grew 3% in September

On Thursday, the National Peruvian Institute of Statistics and Information announced that the Peruvian economy grew by 3% in September. This strong GDP growth was driven by the outstanding performance in the mining and hydrocarbons sectors, which crew by 10.86%, its highest growth so far this year. Central Reserve Bank president Julio Velarde added that it’s possible that the economy actually grew by 3.1 or 3.2%, but that will depend on information to be released on November 15^th.

Nonetheless, BBVA Research published a report warning that unless mining investment in Peru is quickly restarted, the country’s mining sector will start losing its momentum as early as 2018. The study’s authors, Yalina Crispin and Francisco Grippa, explained that the large mining projects in Peru are entering the final phases of construction, and in the short term, there are no plans for new projects.

They added, “Mining is an important and productive sector for Peru, as it is a source of investment and adequate employment. Also as a source of fiscal revenue.” The BBVA report noted that, for the years 2015 through 2017, the mining sector will contribute 1 point towards Peru’s GDP growth. This steady growth in the Peruvian mining sector will be driven by increasing production, not a change in copper and mineral prices.