Lima Chamber of Commerce Calls For Greater Productivity To Tackle Global Downturn

The Lima Chamber of Commerce said that if Peru is to confront a global economic crisis it needs to maintain macroeconomic stability, promote investments, and increase productivity, Radio Programas reported.

A decrease in international demand for commodities, as a result of uncertainty in the global economy, has already started to affect Peru. In April, the country posted its first trade deficit in about three years due to a decrease in exports. Shipments abroad continued to decline in May, with exports falling 16 percent compared to the year-ago month, the government said this week.

Cesar Peñaranda, the director of the chamber’s Business Development and Economy Institute, said that social conflicts are also having an impact on growth. In May, there were 245 conflicts in Peru, with about 60 percent related to socio-environmental demands.

The Lima Chamber of Commerce said it expects Peru’s gross domestic product will expand by 4.7 percent in 2012, which is significantly lower than the 6.0 percent growth that the government is forecasting.

In the second quarter of this year the economy grew by 5.1 percent, the chamber of commerce said. In the first quarter, Peru’s economy grew by 6.0 percent.

In 2013, the economy should also grow about 5 percent, the business group estimates.

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