May 16, 2018 / 9:46 PM / 7 months ago

Peru to extend growth spurt in April and May -minister

LIMA, May 16 (Reuters) - Peru’s economy will likely grow between 5 and 6 percent in April and May, through a recovery of confidence and state investment in construction, Finance Minister David Tuesta said on Wednesday.

Data released earlier in the week in the world’s No. 2 copper producer showed the Peruvian economy grew 3.93 percent in March year-on-year because of improved mining and hydrocarbon output - the fastest growth rate for 14 months.

Even stronger growth in April and May would be good news for newly sworn-in President Martin Vizcarra, who last month unveiled a Cabinet that included Tuesta.

Tuesta said the announcement that the government would plow money into infrastructure projects and cut red tape had prompted banks to extend new credit lines to construction firms that had closed down over the past year because of a corruption scandal involving the former president.

“The indications we are seeing suggest that May will bring a similar result to April,” Tuesta added in an address to Congress’ economics commission.

He said economic growth would have to go hand in hand with sustainable fiscal policies including an overhaul in the administration and collection of taxes.

Growth had slowed in 2017 after severe flooding and far-reaching corruption scandals. A political crisis that resulted in the resignation of former president Pedro Pablo Kuczynski in March also dampened investment in one of Latin America’s most stable economies. (Reporting by Marco Aquino, writing by Aislinn Laing Editing by Caroline Stauffer and Matthew Lewis)

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