Export Growth Will Narrow Peruvian Current Account Deficit In Long Term

• Peru will run modest current account deficits in the coming quarters as a wide primary income shortfall and increasing demand for imports will offset export growth.

 

• In the longer term, however, increasing extractive sector production will help narrow the current account deficit.

 

• Fitch has revised its 2019 and 2020 current account deficit forecasts to 1.7% and 1.6% of GDP respectively, from 1.4% and 1.2% previously, reflecting a less bullish outlook for copper prices.

(Source: Fitch)