Peru last year suffered its worst growth record in at least two decades, with GDP expanding by only 2.16%. This compares with 4% in 2016, 2.5% in 2017, and 4% in 2018. Even so, the rate was higher than in several of Peru’s neighbours.
A major factor was the slowdown in Chinese growth caused by its trade dispute with the United States. Output in the all-important mining sector shrank by 0.05%. Mining exports for the year were down by 2.9%, copper exports by 7%. But domestic demand also grew slowly, with sectors like manufacturing down by 1.7%.
Critics of government policy say that the authorities should step up public investment to accelerate growth. For an interesting article on the vicissitudes of economic growth and possible policy options, Waldo Mendoza from the Catholic University (PUCP) offers an interesting interview with the business newspaper Gestion.