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Peru to cut 2019 growth forecast for third time this year

Published 11/08/2019, 04:07 PM
Updated 11/08/2019, 04:11 PM
© Reuters.  Peru to cut 2019 growth forecast for third time this year

LIMA (Reuters) - Peru's central bank said on Friday it intends to cut its growth projection for 2019, which would be the third reduction this year as the economy and public investment dip amid political upheaval and stalling global growth.

The bank's central economic studies manager, Adrian Armas, said in a conference call that the reduction form the current 2.7% forecast will be announced in a Dec. 20 inflation report, when the agency will reveal economic projections for 2020.

"The projection has a downward bias but the revision will be done in December with all the indicators that we will receive on that date," he said.

The bank cut its initial 4% forecast for this year to 3.4% in July and again in September, amid political clashes between President Martin Vizcarra and lawmakers that led to the dissolution of Congress late that month.

Economy Minister Maria Antonieta Alva said in October the government's projection of GDP growth of 3% for this year also had a downward bias, hit by the global slowdown.

Peru's reference interest rate was cut to 2.25% from 2.5% on Thursday in a bid to help growth.

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