Peru Accelerates Economic Growth With 5G And Mining Revenues

Peru's economy is experiencing a significant rebound, with a growth rate of 4% in April and May 2024, driven by increased public and private spending. The government is focusing on revitalizing the mining sector, which saw transfers exceeding S/ 6,601 million in the first half of 2024, indicating a strong financial movement in this critical area. The mining sector's expansion potential is further underscored by exploration projects valued at US$ 253 million [492d9f5e].

In February 2024, the Peruvian economy grew by 2.85%, surpassing analysts' expectations. The mining and hydrocarbons sector was the largest contributor, growing close to 16%, while the manufacturing sector faced a decline of 10.92%. The government has implemented measures to boost the mining sector and is optimistic about sustaining this growth momentum [42e762c9].

The recent approval of direct assignments of radio spectrum frequencies for nationwide 5G deployment is expected to enhance telecommunications and support various sectors, including healthcare and education. This digital transformation is part of a broader strategy to modernize the economy and improve living standards [492d9f5e].

Peru's largest bank, Banco de Crédito del Perú (BCP), has raised its annual GDP projection from 2.5% to 3%, attributing the rebound to favorable copper prices, lower inflation, and countercyclical policies of the central bank. BCP expects mining investment to grow by 5% in 2024, with significant projects like the Toromocho expansion leading the way [8d256995].

The government is also focusing on infrastructure improvements, with plans for the Metropolitan Lima subway to offer free access until early November to encourage public transport use. Additionally, the Ministry of Transport and Communications is working on enhancing transportation infrastructure to support economic growth [492d9f5e].

Tanzania is also experiencing economic growth, with a growth rate of 5.1% in 2023, attributed to government initiatives and increased mineral production. However, the GDP growth rate fell slightly short of the annual target of 5.2% due to challenges such as rising production costs and climate change effects. Tanzania's economy is projected to grow by 5.6% this year, driven by transformative investments in infrastructure [747f1427].