Peru Central Bank Sees 3.4 Percent Growth in Second Quarter

GDP Forecasts 2014Peru’s Central Bank is to lower its forecast for economic growth again this year, the monetary authority’s general manager said.

The Central Bank’s Renzo Rossini said Wednesday that Peru’s gross domestic product will likely expand by 4 percent in 2014, rather than the 4.4 percent it previously forecast, according to news site El Economista.

Rossini said that the economy would bounce back after a quick slowdown in the second quarter, capped off by 0.3 percent growth in June. He said GDP would expand by about 3.4 percent in the third quarter, and 5.6 percent in the fourth quarter.

“This is going to reverse,” Rossini said in an interview posted by daily Gestion. “Political and fiscal factors, and temporary factors that have hit us very hard in the second quarter, will start to ease.”

In general, economists are optimistic that Peru’s slowdown is temporary, expecting that increased mineral production and the start of infrastructure works will spur growth.

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