The Economic Commission for Latin America and the Caribbean (ECLAC) has estimated that Peru´s economy with grow by 3.8% in 2016. This would make Peru the second fastest growing economy in South America for this year.
ECLAC had previously announced an estimate of 3.4% growth, but recently increased this claim this past Friday. It projected Bolivia to have the largest growth with 4.5%, with Peru following with 3.8%. Colombia will grow by 2.9%, Paraguay by 2.8%, Chile by 1.6%, and Uruguay by 0.5%.
Overall, ECLAC has predicted that South America as a whole will decrease in economic growth. Part of this prediction comes from the anticipated economic decrease in Ecuador, Argentina, Brazil, and Venezuela. Particularly Brazil and Venezuela are expected to see a decrease in economic growth of -3.5% and -6.9%, respectively.
In 2015, ECLAC reported that overall GDP in Latin America and the Caribbean decreased by -0.5%. Upon seeing their new predictions for 2016, it is clear that more contraction of the economy is to be expected.
It is seen across the globe that developed countries are experiencing low growth, and that developing countries are also feeling this pressure. Because of increasing costs and low prices for exported goods, developing economies are taking a small hit.
The good news is that, despite this overall prediction of economic contraction, Peru will continue to experience economic growth throughout 2016.