IMF head foresees Peru’s GDP per capita doubling in 10 years

Peru’s GDP per capita should double in less than 10 years if the country maintains an annual economic growth of 6 percent to 7 percent, according to the head of the International Monetary Fund, Dominique Strauss-Kahn, who was in Lima on Thursday.

“To double the GDP per capita from $5,000 to $10,000 is going to change the reality of the country, of lives, and that should be the goal in the future years,” state news agency Andina quoted Strauss-Kahn as saying at Peru’s San Marcos University.

Strauss-Kahn pointed to the importance of young people and education to continue improving the economic situation in Peru and other Latin American countries.

“When the level of education increases, in one way or another, sooner or later, it is going to have consequences for growth, for wealth and for economic security,” the managing director of the IMF said.

“The role of university students is of vital importance. I don’t want to put a big load on their shoulders, but to them falls the responsibility for the future of their country.”

Strauss-Kahn added that he doesn’t see recent economic troubles in Europe as having a major impact on Peru or other countries in the region.

“Obviously a general decline in growth in Europe would have an impact on the rest of the world, but I don’t think it would be very strong in Peru or other countries in Latin America and the Caribbean.”

However, he did say that Peru should start rolling back its economic stimulus plan in order to prevent “overheating” of the economy.

Strauss-Kahn’s trip to Lima is part of a four day visit to the region that included a previous stopover in Brazil. He will take part in the Third Meeting of Finance Ministers of the Americas and Caribbean on Friday, May 28, according to the IMF’s website.

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One Comment

  1. Off mathematics. For a number to double in ten years, it needs to grow by 7.2% annually. Considering that Peru’s population is rising, its economy would need to grow by at least 8% per annum this decade if it were to double GDP per capita.

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