Fastest growing economy

 The Peru will remain the fastest growing economy and low inflation in Latin America in 2013, thanks to private investment, which will dynamically, and the strength of domestic consumption, said the Minister of Economy and Finance, Luis Miguel Castilla.

He said despite the difficult context that persists internationally, this year the country will grow by 6.3%, becoming the fastest growing economy with low inflation in Latin America.

At the end of the fourth quarter, he said, the rate of inflation will be 2.8%, reaching back into the target range set by the Central Reserve Bank (BCR).


To take stock of the sector in 2012, emphasized the important work done in reforms that aim to generate substantial changes to achieve greater welfare of the population in the long term.

Domestic consumption, he said, showed exceptional levels of expansion this year to improve revenue, which allowed the increase of the middle class in the country.
"According to the World Bank (WB), 80% of the growth of the middle class and economic growth comes from the other 20% of redistribution", said Castilla.

He noted that economic growth is the most important component in reducing poverty and the challenge is to create better opportunities for all Peruvians.

As part of the pending agenda, said the MEF will continue to work measures to increase competitiveness and productivity, including the improvement of human capital, reducing the infrastructure deficit, promoting innovation and technology.

He stressed that this good position of the Peruvian economy, the rating agency Moody's raised the level investment grade Baa2 country, maintaining the positive outlook, recognizing the strong macroeconomic fundamentals and high levels of growth achieved.

"The growth of Peru in 2012 is a result also of significant dynamism of domestic demand, especially private investment."


He said that despite the international uncertainty, Peru continues to be an economy that surprises with its resistance level, which does not make it immune to international shocks.

Also reported that MEF management this year focused on macroeconomic management and tax efficient, and in driving major reforms.

The minister said that the execution of the public budget is 80% to close 2012, the highest level since 2007, including 2011, considered an atypical year.

"Public investment will grow by 30% by the end of 2012, driven primarily by regional and local governments, thus meet the target set earlier this year."

Commercial relations with Chile

The economic and trade relationship with Chile is "reciprocal and dynamic", so that "transcend" the situation of the ruling on the maritime delimitation between the two countries that will define the International Court of Justice (ICJ), said Luis Miguel Castilla.

Two weeks ago, he recalled, was in Santiago for a meeting of ministers of finance, in which through discussions with the Peruvian and Chilean businessmen ambassador noted that this relationship "is at its best."

"On that subject I am optimistic that there is so much complementarity (between Peru and Chile) and we have a common destination countries that are in the Pacific Rim, which must transcend current issues such as the ICJ."

This relationship is "bilateral and reciprocal" because while Chile has investments in Peru for more than 12,000 million dollars, our country has 6,000 million to 7,000 million in the southern nation. "This is a clear example that the economic and trade relationship has been going very dynamic way."


1 The approved budget for next year aims to close the gaps in the rural sector and their access to basic services and to improve human capital to the public sector, said Luis Castilla.

2 stated that the state "needs to modernize" and human capital "is central," so it is necessary to strengthen this area with a racing line.

3 "The budget that we approved for next year seeks to close these gaps, on the one hand, and the other issue is the quality of human capital, which seeks to improve (areas like) education, health and nutrition."


The tax base in Peru grew 30% in this government, thanks to measures to reduce sources of evasion and avoidance wide margin that existed, said Luis Castilla.

He said the good way in which transits Peru is reflected in the tenfold increase in Foreign Direct Investment (FDI) in the past ten years, and in reducing poverty.

The Gross Domestic Product (GDP), said, quadrupled and exports rose by seven in the same period.

Castilla also reported that mining investment grew more than 20% in the first three quarters of 2012.


More News

Direct booking