LIMA, April 29 (Reuters) - Peru’s finance ministry said on Friday it expected economic growth to quicken to 3.8 percent this year and to 4.6 percent in 2017 before slowing to 4.0 percent the following two years after a surge in copper output subsides.
The government’s new growth estimate for this year’s economic expansion, published in a biannual economic report, was under its last official view of 4.3 percent in August but in line with recent forecasts by the finance minister.
In its August report, the ministry had put economic growth at 5.3 percent in 2017 and 4.5 percent in 2018.
Economic growth in Peru has been recovering on soaring copper production from new mines since late last year, a trend expected to continue through 2017. However, a lack of major new mining projects afterward makes the driver of future growth less certain.
President Ollanta Humala’s term ends July 28 and the two business-friendly candidates vying to succeed him, Keiko Fujimori and Pedro Pablo Kuczynski, have both promised to boost growth through infrastructure spending.
The finance ministry also widened its view of the current account deficit, to 3.7 percent of GDP for this year from 3.5 percent previously, and to 3.5 percent in 2017 from 2.4 percent before.
The trade deficit will likely be $1.5 billion in 2016 and $1.1 billion in 2017, the ministry said. It had previously forecast a $2.7 billion deficit for this year and a $800 million gap in 2017. (Reporting By Marco Aquino; Editing by David Gregorio)