Despite the situation Latin America faces, Peru will have “good” economic growth that many countries in the region would like to have, said Alejandro Werner, Director of the International Monetary Fund Western Hemisphere Department, according to El Peruano. The IMF expects growth of 3.8% for Peru having dropped to 0.5% its forecast for economic growth in Latin America and the Caribbean this year, reflecting declines in commodity prices and more stringent external financial conditions. “In April, it estimated it would rise 0.9%”.

Werner said it had to be recognised that this situation is part of a normal economic cycle, which is seen after a period of dynamic and extended growth in several countries of the region. “This period had to show some slowdown which was intensified by the fall in commodity prices”, he said.

In addition, he said, the advance in the normalisation of monetary policy in the US, the appreciation of the dollar and the volatility brought in some markets. “The most important thing is to understand that is part of a natural economic phenomenon in a positive trend, mainly in some economies like Peru”, he stressed.

Considering Peru, he mentioned that the supply of raw materials with the opening of new mining projects, as well as the countercyclical fiscal policy are aspects that will help in the middle of this picture. He said that now Peru must think about which are the sources of growth for the next decade, because commodities will not repeat the price boom they had in the past ten years.

Werner said that the forces of growth should come from investment, increased productivity and addressing issues that the region has as pending. “It is necessary to make progress in educational quality, regulatory improvements for easier business dealings, infrastructure aspects, among others.”

International Mining will be attending Perumin and Extemin in Arequipa next month and reporting on some of the country’s mining developments.