Chief Economist for Latin America and the Caribbean at the World Bank Group Augusto de la Torre said Peru “looks quite well” despite the weak economic growth facing Latin America.
He recalled that on Thursday morning, the International Monetary Fund (IMF) lowered its growth forecast for Latin America to 0.5%, compared to an earlier forecast of 0.9%.
“What it is interesting is that in some countries of the region such as Brazil, now Chile, and possibly Ecuador, significant downward revisions of growth are being made, which suggests that Latin America as a whole will post growth rates close to zero in 2015,” de la Torre noted.
The World Bank economist considers Peru’s performance would have to be compared with the regional average; however, he said “it [Peru] looks quite well compared to that average.”
He pointed out a slow recovery process is occurring in some countries in the region, such as Mexico, whose growth rates are going up, as well as Central America and the Caribbean.
“A growth slowdown is underway in countries that specialize in the export of raw materials, in some countries more than others. In Peru, the downturn is important, but is much milder than in Brazil,” he noted.
De la Torre believes that as long as the European economy continues to recover slowly, as it has occurred so far, the impact on Latin America “would be actually minimal.”
The analyst warned that what the region would have to be concerned about has to do with China’s growth process, raw materials prices and how to weigh up domestic economic policies, in a bit to recognize the reality and avoid significant economic downturns.