Peru cenbank slashes 2014 growth outlook to 4.4 pct from 5.5 pct

LIMA, July 18 Fri Jul 18, 2014 11:31am EDT

Related Topics

LIMA, July 18 (Reuters) - Peru's central bank slashed its 2014 economic growth estimate to 4.4 percent from its April view of 5.5 percent, and cut its view of next year's expansion to 6 percent from 6.7 percent, the bank said on Friday.

The bank also nearly tripled its estimate for the size of this year's trade deficit, forecasting a $2.6 billion gap instead of $945 million.

Growth expectations for the Andean country's usually fast-paced economy have moderated as its key mineral exports have tumbled on lower prices, softer demand, and weaker output.

Peru will likely post a trade deficit in 2015 for the third year in a row, the central bank said, changing its previous view of a $263 million surplus to a forecast for a $2.2 billion negative gap.

The central bank also expects a larger current account deficit this year than before - 4.8 percent instead of 4.3 percent as estimated in its last quarterly report.

The bank also trimmed its view of this year's fiscal surplus to 0.2 percent of gross domestic product from 0.3 percent.

(Reporting By Patricia Velez; Editing by Meredith Mazzilli)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.