Peru and Panama will likely see Latin America's best economic performance this year, while Venezuela will see the worst.
BY LBC STAFF
Peru will have Latin America’s fastest economic expansion this year, according to a Latin Business Chronicle analysis of new estimates from the International Monetary Fund (IMF). Meanwhile, Venezuela will see the lowest growth rate, the analysis shows.
Peru is set to see its GDP expand by 7.5 percent this year, the IMF estimates. That compares with 8.8 percent last year, which was the third-highest level in Latin America.
However, the estimate was likely compiled before Sunday’s presidential elections in Peru, where leftist Ollanta Humala won the first round. He will face lawmaker Keiko Fujimori in a second round on June 5. Humala has pledged to increase royalties on mining (a key sector of Peru’s economy), redistribute wealth and change the constitution, which protects private sector from overwhelming state involvement. As a result, local and foreign investors fear a Humala victory would slow Peru’s recent economic expansion.
However, most experts believe Fujimori (who pledges to follow current economic policies) will win a narrow victory. (See Peru: Investors Worry About Humala).
Panama is expected to post growth of ...
TABLES: GDP Growth 2011 and GDP Growth 2010 ranked by actual and expected increases.