MercoPress. South Atlantic News Agency

Growing mineral exports boost Peruvian economy

Peru's Central Bank raised the country's economic growth forecast for 2007 from 5.7 to 6.8%, following a 7.9% expansion in 2006, which was the highest since 1995.

A strong surge in mineral exports and sustained domestic demand helped boost the economy together with a sound fiscal policy and a friendly climate for foreign investments. The Peruvian Central Bank estimates for 2007 also include a "zero" budget surplus, down from last year's record surplus of 1.9% of GDP. However inflation for the next twelve months is estimated in the range of 2%, down from 2.5% just a few months ago. Trade surplus reached 8.8 billion US dollars in 2006, up 68% over 2005 pushed by a 37% surge in exports which totaled 23.7 billion US dollars, and 24% in imports, totaling 14.9 billion US dollars. Last December the trade surplus was 1.07 billion US dollars, 17% higher than in December 2005 completing 44 consecutive positive months. December exports were equivalent to 2.5 billion US dollars, 27% higher than the same month in 2005.