Blackrock highlights infrastructure opportunities in Peru

16:44 | Lima, Dec. 9.

Peru looks attractive to foreign investment and "there are a lot of opportunities with the topic of infrastructure projects, which is a topic that could differentiate the country," said Blackrock —one of the largest investment managers in the world.

In this regard, Blackrock said this plan —if executed with the help of the private sector— could become a "growth engine" of the economy for the following years. Therefore, Blackrock stressed that it should be given all the facilities for its development.

"The issue is not the plan, but the execution," it emphasized.

Peru's growth

In its latest report of 2019, the International Monetary Fund (IMF) lowered its global growth expectation forecast to 3%. For Latin America, it was reduced to 0.2% due to the greater trade barriers and the uncertainty on the confrontation between Beijing and Washington D.C. In Peru, it projected a growth rate 2.5% for this year.

This lower expansion affects the way in which foreign investment is attracted. However, for Blackrock, Peru has a respectable growth rate.

"Peru maintains a respectable growth, and for this year, a growth (rate) between 2% and 3% is expected," said Blackrock Managing Director and Global Head of Active Equity Product Strategy Daniel Gamba, who participated in the annual conference of the CFA Society Peru.

According to Gamba, the world is going through a year of transition caused by electoral issues in the United States and the restructuring of its commercial relationship with China. "Within that framework, Latin American markets have the task of achieving stabilization."

Likewise, the officer mentioned that investors are "quite cautious" about what happens in the region. However, he noted that "globally (speaking), there is excess liquidity" to invest despite geopolitical uncertainty.

He also said that other attractive sectors for investment are those related to consumption and retail trade within the country, in addition to the banking sector.


Published: 12/9/2019
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