Humala Says Economy to Recover in 2015 after Slowdown

President Ollanta Humala, with about 18 months left in his administration, says that he expects Peru’s economy to post stronger growth in 2015 than last year.

In a lengthy interview with RPP radio, Humala said that this year will be better in terms of economic growth thanks to the startup of mining projects, new infrastructure works and the implementation of government reforms to facilitate investments.

“2015 is going to be better than 2014, because mining projects that were delayed are starting up and large works that will create jobs, in infrastructure, are starting,” Humala said, according to state news agency Andina.

Peru’s economy like grew between 2.5% and 3% in 2014, lower than forecast and below the 5.8% growth in 2013.

The weaker growth came as a bit of a shock for many in Peru, who were used to years of robust economic activity driven by a global commodities boom and stronger domestic demand. The deflation of demand for commodities like copper led to the sharp slowdown in Peru’s growth.

Government economists have said they expect growth to recover this year, with the gross domestic product expanding by about 5%.

But business leaders have already expressed doubt about that forecast. Newspaper El Comercio reported a poll of business executives that showed they expect growth of less than 5% in 2015.

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