Peru's Gross Domestic Product (GDP) is expected to rise by more than 4 percent, well above the regional average of 2 percent, the World Bank (WB) reported on Wednesday.
"This result displays Peru as an economic model in the region," said Jorge Familiar, WB Vice President for Latin America and the Caribbean, following a meeting on Wednesday with the head of State Ollanta Humala.
He stressed the Peruvian economy “will clearly expand over the Latin American average” at the gathering which was also attended by the country's Finance Minister Luis Miguel Castilla.
At the presidential palace in the nation's capital Lima, the Peruvian leader and the senior WB official assessed the strength of Peru’s economy and external factors affecting the regional economic performance.
The high level executives pointed out that some of the biggest challenges affecting the region are around the shift in United States' monetary policy, China's economic slowdown and the drop in the price of raw materials in international markets.
“In this new context, Peru has continued to be regarded as a model for the region,” Familiar noted while highlighting the country’s strong fiscal position, which enabled the implementation of economic stimulus measures that “without a doubt will yield results over the medium term.”
Furthermore, the Mexican-born economic analyst lauded the US$66 billion the Andean country has in foreign reserves, which accounts for 33 percent of the nation's GDP and domestic consumption.
"All of this leads to the conclusion the Peruvian economy is likely to keep growing at a good pace, while the government's stimulus package is expected to head on that track too," he added.
(END) NDP/ASH/RMB
Published: 7/24/2014