IDB expects Peru to have highest regional growth rate with 8.3 percent in 2008

Growth expectations for 2008 rose in Peru from 7.8 to 8.3 percent — the region’s highest regional growth rate — and are expected to stablize at 7 percent in 2009, according to a survey sponsored by the Inter-American Development Bank, or IDB.

According to the July edition of the Revelation of Expectations in Latin America survey, or RELEVA, “this month growth expectations for 2008 increased in five countries. They rose in Uruguay from 6.03% to 6.8%, in Peru from 7.8% to 8.3%, in Bolivia from 4.56% to 4.78% and increased somewhat in Brazil and Paraguay.”

Growth expectations fell, however, in Argentina, Chile, and Mexico, and stabilized in Colombia (6.11%), Costa Rica (4.8%), Guatemala (4.0%) and Honduras (4.8%).

For 2009, growth expectations remained unchanged in Peru (7%), Colombia (5.91%), Costa Rica (4.9%) and Honduras (4.8%), while they fell in countries such as Chile, Argentina and Brazil.

According to the REVELA, inflation expectations have also continued to increase – in almost all countries included in the survey, but except for Peru – both for 2008 and 2009.

“The simple average of expected inflation for 2008 rose from 8.48% to 8.95%. Moreover, the 2009 expected inflation rate is also up, reaching a simple average of 8.3%, 0.35%,” reported the working document.

The expected inflation rate in Peru, however, remained unchanged.

REVELA survey results are collected on a monthly basis by the IDB Research Department and conducted by private sector actors and the included countries’ central banks.

On July 2, the Multilateral Investment Fund, or MIF, an independent fund administered by the IDB to support private sector development in Latin America and the Carribean,and Lima’s Stock Exchange launched a joint $972.00 program to facilitate mid-size companies’ access to the Peruvian capital market through the bourse.

Some 500 Peruvian businesses with annual sales under $100 million were targeted as potential beneficiaries of the program.

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