Saturday, August 9, 2008

Peru Economy Forecast To Grow 9% in 2008

Peru's economy is going to grow faster than previously estimated this year because of surging consumer demand, according to Central Bank General Manager Renzo Rossini. He now expects gross domestic product to expand by 9 percent, up from an earlier bank estimate of 8 percent. Inflation will slow to the bank's annual target of no more than 3 percent by the end of 2009 as prices of imported commodities drop, he said.

``The economy is growing at full speed,'' Rossini said. ``Investment continues to come in and consumers are optimistic. Growth is guaranteed for this year.''

The IMF are currently forecasting 7% growth for Peru in 2008, but as we know all these forecasts are subject to very large margins of error.

Higher global prices for metals, natural gas and fishmeal, coupled with surging investment and domestic demand, have helped fuel Peru's longest economic expansion. Consumer demand jumped 12.3 percent in the first half. Peru's sol weakened for a fourth day, dropping 1.6 percent to 2.8585 per dollar at 12:55 p.m. The currency has gained 4.9 percent this year.

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