There is no stopping Peru’s economy.
As the country prepares for its April 10 general election, central bank governor Julio Velarde has raised the GDP forecast to 4%, up from 3.3% last year. Public works spending is set to rise 8% from 2015, consumer consumption by more than 2%, and copper production is expected to soar by 66%. These three sectors will be the main drivers of growth.
Currency and inflation concerns will not spoil the party, either. After depreciating some 20% against the dollar since August 2014 and falling to a nearly 13-year low against the dollar in mid-February, the Peruvian sol inverted its trajectory and started gaining ground. Inflation, which peaked at 4.61% in January, is expected to ease to 3.1% by the end of the year after three successive quarter-point hikes since December. Velarde has every reason to smile: With Latin American and Caribbean nations projected to grow just 0.2% in 2016, the blossoming of Peru’s economy appears even more impressive.