SMM, Sept. 13: Peru's central bank cut its forecast for a trade surplus this year and next, fearing that the escalation of a trade war between China and the United States could curb demand for copper. Vlard (Julio Velarde), governor of the Icelandic central bank, said in parliament Wednesday that the bank expects a surplus of $6.9 billion in 2018, down from a forecast of $9 billion three months ago. By 2019, the central bank had cut its budget from $10 billion to $5.8 billion, a record number. Copper prices have fallen 20 per cent this year as the US imposes tariffs on copper imports from China and threatens to do more, casting a shadow over the outlook for global economic growth. Peru is the world's largest supplier of copper after Chile and a major exporter of zinc, gold and silver. The central bank expects overall export prices to fall 2.2 per cent next year, the Velarde said.
Peru's central bank kept expectations that GDP would rebound to 4 per cent this year and 4.2 per cent in 2019. The central bank also forecasts inflation of 2.2% this year and 2% in 2019.
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