LIMA, PERU - Private investment in Peru is set to grow by 6.1 percent annually between 2014 and 2017, increasing its share of Gross Domestic Product (GPD) to 20 percent by the end of the three-year period.
"Peru's private investment rate (as a percent to GDP) would be among the highest in the world,” said Luis Miguel Castilla, country’s Finance Minister, at a press conference following a Ministerial Council meeting on Wednesday.
During his remarks, he stressed Peru will see a reduction of its current account deficit from 5.1 percent of GDP in 2014 to over 4 percent in 2017, thus trimming the economy’s vulnerability to external shocks.
“The forecast for the period under study will be financed with long-term capital, while maintaining the sustainability of external accounts,” the minister said addressing the audience gathered at the Government Palace in the nation's capital Lima.
In addition, Castilla noted that it is envisaged an economic balance of the nonfinancial public sector (NFPS) in 2014 and a structural deficit of 1 percent of Peru’s GDP starting 2015.
Within this framework, the Peruvian gross public debt will continue to decline from 19.8 percent of GDP in 2013 to 17.5% in 2017, maintaining Peru as one of the economies with lower debt ratios.