Central Bank: Peru’s economy expected to grow by more than 8 percent in Q2

Peru’s economy is expected to grow by more than 8 percent during the second quarter of 2010, compared to the same period last year, the head of the country’s central bank Julio Velarde told participants of the Bloomberg Peru Economic Summit on Wednesday. 

“The second quarter is coming with a lot of strength,” Velarde was quoted saying by state news agency Andina. “Economic growth in the second quarter, compared to the same period last year, is going to exceed 8 percent.”

Velarde added that the Central Bank considers neither Peru’s economy as “overheating” nor inflation as a concern.

In June, Peru’s central bank is projecting inflation of only 0.1 percent.

“As we have mentioned in our last monetary policy meeting… the [central bank] will stay alert to any inflationary pressures from demand,” said Velarde.

Peru’s Economy Minister Mercedes Aráoz also dismissed concerns about the country’s economy overheating.

“Our perspective for [economic] growth is 5.5 percent and the central bank is talking about 6 percent, but that isn’t overheating the economy,” said Aráoz. “Overheating the economy would be if the rates were 9 or 10 percent.”

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