June 16th, 2006 09:57 EST
Peru's Economic Growth Praised by International Monetary Fund By Eric Green
Washington -- The International Monetary Fund (IMF) has praised the "continuing strong performance" of Peru's economy, saying the country has successfully maintained macroeconomic stability and low inflation.
In a June 14 statement, the IMF's Anoop Singh said Peru's gross domestic product (GDP) grew by about 6.5 percent in 2005, compared to about a 4 percent GDP rate per year from 2002 through 2004. The higher GDP is being driven by surging exports and private investment in Peru, said Singh, who is director of the IMF's Western Hemisphere Department.
Singh said the country's inflation rate over a 12-month period ending in May was 2.2 percent. He commended Peruvian authorities for their progress in "structural reforms, especially in improving the business climate, enhancing public financial management, and strengthening banking supervision and regulation."
Singh said Peru's President-elect Alan García has emphasized to the IMF "his commitment to raising investment and sustaining rapid economic growth, while ensuring much greater poverty reduction." Singh said the president-elect has reaffirmed his determination "to ensure that the needed increases in social and anti-poverty spending would be fitted into a prudent fiscal and overall macroeconomic framework consistent with maintaining low inflation and a supportive investment environment."
Garcia won Peru's June 4 presidential runoff election in what an observation team from the Organization of American States said in a June 6 statement was carried out in a "calm, orderly and transparent" manner. Observers of the Peru election from the European Parliament also praised the country in a June 5 statement for running a peaceful election.
U.S. State Department spokesman Sean McCormack said June 5 that the United States congratulated the Peruvian people "on what would seem to be an open election free of violence." McCormack said the United States had not heard any serious reports of electoral irregularities, "so this is an important moment for the Peruvian people." (See related article.)
Peru and the United States signed April 12 a trade agreement designed to expand economic opportunities and raise living standards in Peru. Bush administration officials said the U.S.-Peru Trade Promotion Agreement is “instrumental” in the U.S. strategy to advance prosperity in the Western Hemisphere. (See related article.)
The full text of the IMF statement on Peru is available on the IMF Web site.
For information on U.S. policies, see Andean Region.
(The Washington File is a product of the Bureau of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)