Peru’s Internal Market Boosts GDP Growth

Peru’s robust 7.3% GDP growth in May exemplifies the country’s strong internal growth despite harsh external conditions and monetary restrictions, says Alfredo Coutino, senior economist with Moody’s Economy.com. “The internal market is expected to be the growth driver this year, which will compensate for the deceleration in exports,” Coutino adds. GS is also optimistic on Peru’s outlook. “The economy continues growing at a remarkably robust pace,” says the shop. “We remain comfortable with our 8.3% real GDP growth forecast for full year 2008,” it adds. On Monday, Peru received its second investment grade nod, this time from S&P, at the same time that new finance minister Luis Valdivieso was sworn in.