
Trade Finance In Wartime
The huge drop-off in trade involving Russia and Ukraine has hit trade finance hard.
There is no stopping Peru’s economy.
As the country prepares for its April 10 general election, central bank governor Julio Velarde has raised the GDP forecast to 4%, up from 3.3% last year. Public works spending is set to rise 8% from 2015, consumer consumption by more than 2%, and copper production is expected to soar by 66%. These three sectors will be the main drivers of growth.
Currency and inflation concerns will not spoil the party, either. After depreciating some 20% against the dollar since August 2014 and falling to a nearly 13-year low against the dollar in mid-February, the Peruvian sol inverted its trajectory and started gaining ground. Inflation, which peaked at 4.61% in January, is expected to ease to 3.1% by the end of the year after three successive quarter-point hikes since December. Velarde has every reason to smile: With Latin American and Caribbean nations projected to grow just 0.2% in 2016, the blossoming of Peru’s economy appears even more impressive.
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