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LatinNews Daily - 04 May 2021

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In brief: Peru’s gov’t predicts strong economic recovery

* Peru’s economy & finance minister, Waldo Mendoza, has announced the government’s economic forecast for 2021-2024, which predicts a strong recovery after a tumultuous year that saw annual GDP fall by 11.1% in 2020 on account of the coronavirus (Covid-19) pandemic. Mendoza forecast GDP growth of 10% in 2021, which would be the largest annual increase since 1994, as a result of resumed economic activity following last year’s lockdowns. He predicted that the year-on-year growth rate will then stabilise at 4.5% for the 2022-2024 period, which he said would be sustained by internal demand, increasing copper exports, and the recovery of external demand. He also said that private investment would increase in this period as construction continues on several key infrastructure projects, including a subterranean line of the Lima metro and the extension of Lima's ‘Jorge Chávez’ international airport. Mendoza also forecast a 2021 fiscal deficit of 5.4% of GDP, with public debt sitting at 35.8% of GDP.