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UPDATE 1-Peru sees 5.2 pct economic growth in 2nd half of 2014
August 14, 2014 / 3:55 PM / in 3 years

UPDATE 1-Peru sees 5.2 pct economic growth in 2nd half of 2014

(Adds quote from minister, context on economic slowdown)

LIMA, Aug 14 (Reuters) - Peru’s finance minister said on Thursday that the country’s slowing economy will likely recover to grow by 5.2 percent in the second half of 2014 from the same period in 2013 because of strength in mining and construction.

Finance Minister Luis Miguel Castilla said the economy likely grew by 3.3 percent in the first six months of the year compared to the same period in 2013.

“We’ve passed the low point in growth for the country and we are entering a phase of clear recovery in coming months,” Castilla said on the sidelines of an event.

Castilla told Reuters on July 30 that the economy would likely expand by between 4 and 4.5 percent in all of 2014, a notable slowdown from growth rates that topped 6 percent in most of the past decade.

Peru’s economy has stumbled as global demand and prices for its key mineral exports have eased.

A drop in gold output in the first half of the year and weaker-than-expected copper production because of problems at a few large mines have also dampened growth.

But a rebound has been widely forecast in the third and fourth quarters, when growth tends to pick up on boosted public spending anyway ahead of year’s end.

The start of big construction projects, the ramping up of Chinalco’s delayed Toromocho copper mine and the impact of recent economic reforms will further spur growth, Castilla has said.

Growth data for June is scheduled to be released on Friday.

The Andean country is the world’s fifth top gold producer, and the third biggest producer of copper and silver.

Mining makes up nearly 15 percent of grosss domestic product and 60 percent of export revenues.

Last year Peru’s economy grew 5.8 percent. (Reporting by Teresa Cespedes; Editing by Jeffrey Benkoe and Chizu Nomiyama)

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