(Recasts, adds details)
LIMA, June 18 (BestGrowthStock) – Peru’s central bank raised its
forecasts for economic growth on Friday, underscoring signs of
a strong recovery, but said surging imports in the Andean
country will cause the current account deficit to widen.
Peru, along with Brazil, is expected to be among the top
growing Latin American economies this year. Growth is expected
about 6.6 percent in 2010, up from an earlier outlook of 5.5
percent, the central bank said. The central bank sees expansion
of 6 percent is seen in 2011.
Economists in the private sector and the IMF have said
growth of up to 7 percent this year is likely in Peru, which
traditionally has been a leading global minerals exporter and
more recently has seen its economy driven by a booming
construction sector.
Central Bank President Julio Velarde discarded talk that
the rebound is too swift. “We don’t see” signs of overheating,
he said at an event to discuss the bank’s quarterly outlook.
It trimmed its forecast for the country’s trade surplus to
$6.6 billion from $8.4 billion, which will translated into a
wider current account gap, now seen at 1 percent of GDP instead
of 0.3 percent of GDP forecast previously.
The bank’s forecasts for fiscal deficits this year and next
were unchanged 1.6 percent and 1 percent of GDP, respectively.
It also said that inflation this year should be around 2
percent, within its target range between 1 percent and 3
percent. The central bank has raised interest rates in the past
couple of months to 1.75 percent from an all-time low of 1.25
percent as the economy gains steam.
Stock Market
(Reporting by Patricia Velez and Eduardo Garcias; Editing by
Theodore d’Afflisio)
UPDATE 1-Peru central bank lifts GDP outlook
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