Peru economy minister projects 9 percent growth
LIMA, Peru: Peru's economy minister says only a global financial disaster would keep Peru from reaching projected annual economic growth of 9 percent in 2008.
President Alan Garcia said last week that Peru has taken the necessary precautions with its financial sector and holds enough foreign currency reserves to confront the current global crisis.
Economy Minister Luis Valdivieso acknowledges that the crisis is "more difficult than we projected," but highlighted Peru's US$35 billion in reserves and government spending cuts as stabilizing factors.
Valdivieso on Friday projected economic growth of seven percent in 2009, given the slowing global economy. Annual inflation is projected to reach 5.8 percent in 2008 and drop to 3.5 percent in 2009.