Peru GDP Growth Seen Slowing: CS

Peru’s impressive expansion looks set to slow, according to Credit Suisse, which predicts real GDP growth of 6.5% in 2008, from 8.9% in 2007. The shop sees tightening in monetary policy and a less favorable global environment as slowing factors. Domestic demand growth will ease to 9% this year, down from 12% in 2007. A gradual decline in consumer spending growth in coming quarters could happen since consumer sentiment has gradually weakened since 2Q 2007. Private investment growth will also likely decelerate due to weaker domestic and global demand, says CS. Import growth will likely also fall this year in real terms, in tandem with domestic demand, but the change in net exports will still drag down real GDP growth by about 2.7 percentage points, the shop says.