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Peru's new economy chief keeps 3% growth forecast for 2019

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Peru's new economy chief keeps 3% growth forecast for 2019

Peru's recently appointed economy and finance minister, Maria Antonieta Alva, said economic growth is still expected to reach 3% this year, but also noted that the forecast faces risks due to a general slowdown in global growth, Reuters reported.

"The official figure [of this year's growth] of the ministry of economy is 3% with a downward bias," Alva told reporters on Oct. 9. "This is related to having an economy integrated with the world, so ... we could be adjusting our growth," she added.

In August, the ministry, led by Alva's predecessor Carlos Oliva, lowered its GDP projection for the year to 3.0% from a previous forecast of 4.2%.

Alva, who was named economic chief just over a week ago following President Martin Vizcarra's dissolution of Peru's opposition-led Congress, noted that the country continued to have a "solid" economy despite the political conflict. Figures for September and October are encouraging, Alva said, but noted that she would confirm the final numbers before having projections for 2020.

Third-quarter private investment posted the highest growth for the year at about 7%, while public investment also increased, Alva added.

The new economy minister plans to grant extensions to some tax benefits for the mining and oil industries, which were set to expire at the end of 2019. In the absence of a functioning Congress, the minister has the power to issue emergency decrees.