LIMA, Aug 31 (Reuters) - Peru’s central bank expects economic growth of 4.3 percent in 2017, more modest than an earlier forecast, although that could be raised if a key oil pipeline resumes operations, Central Bank President Julio Velarde said on Wednesday.
In June, the bank forecast 4.6 percent growth, while the government said on Sunday the economy would grow 4.8 percent next year.
The government forecasts growth of 4 percent for 2016.
Peru’s 40-year-old oil pipeline suspended operations this year after a series of spills in the Amazon. The country’s new energy and mines minister, Gonzalo Tamayo, told Reuters earlier this month that fixing it was a top priority, although it may not reopen until 2018.
“If the pipeline is fixed sooner, if it starts to transport oil, the story will be a little different,” Velarde told journalists after a presentations in Congress, saying that the shuttered pipeline reduces growth by 20 basis points. (Reporting by Dante Alva; Writing by Caroline Stauffer; Editing by Peter Cooney)