IMF: Peru to lead Latin American growth over next 5 years
Peru’s economy is expected to lead Latin America’s growth during at least the next five years, the director of the International Monetary Fund’s Western Hemisphere Department, Nicolás Eyzaguirre, said.
“It is not politically incorrect to say that Peruvian authorities are administrating with great wisdom a group of first generation reforms and has a more solid economic policy,” Eyzaguirre told state news agency Andina.
The IMF’s director general, Dominique Strauss-Kahn, said during a recent visit to Lima that he expects the country’s GDP to expand by 7 percent in 2010, while Peruvian and international economists have been predicting growth between 5 and 6 percent this year.
Meanwhile, a report by Peru’s central bank said it expects the country’s GDP will be negatively affected in the long term by climate change.
According to daily Peru.21, the country’s central bank expects the GDP to be 6.8 percent less in 2030 thanks to climate events.
“In Peru’s case, there is a high vulnerability due to a change in temperature and precipitation, but also because 60 percent of the population lives in the arid coastal zones, because 60 percent of agriculture depends on rain and because 60 percent of electricity is generated by [hydro].”
Environment Minister Antonio Brack previously said he expects Peru will require $400 million annually to mitigate affects from climate change.