UPDATE 1-Peru cenbank raises GDP outlook for 2011

(Adds details)

LIMA, Dec 17 (BestGrowthStock) – Peru’s central bank on Friday
raised its outlook for economic growth in 2011 to 6.5 percent
from 6 percent, suggesting the country’s boom will carry into
next year.

Domestic demand has lifted the construction, manufacturing
and retail sectors and helped offset flatness in the mining
sector — the country’s traditional economic engine.

The growth has increased tax revenues to narrow the fiscal
deficit but also driven up imports and widened the current
account gap.

In its quarterly review of forecasts, the central bank also
said growth this year would come in at 8.8 percent, up from 8
percent projected previously.

Though the central bank’s growth forecasts are strong, it
did say that surging domestic demand may cool next year, to
about 7.6 percent from 12.6 percent this year.

The country’s fiscal balance is expected to finish next
year at zero percent of gross domestic product, narrower than a
deficit of 1 percent of GDP previously forecast.

In 2010, Peru is expected to have a fiscal deficit of 0.9
percent of GDP, narrower than a deficit of 1.5 percent of GDP
in a previous forecast.

The central bank kept its outlook for the current account
deficit next year at about 3 percent of GDP as strong demand
drives up imports for consumer goods and machinery.
(Reporting by Teresa Cespedes, Editing by Chizu Nomiyama)

UPDATE 1-Peru cenbank raises GDP outlook for 2011