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23/03/2012 | Latin America - Peru gov't says to launch $10 bln investment plan

Reuters Staff

Peru plans to launch joint government-private sector investment projects totaling more than $10 billion this year and next, Finance Minister Luis Miguel Castilla said on Wednesday.

 

Solid domestic demand has helped power Peru's economy and withstand downward pressure from Europe's debt woes and slow U.S. growth. Peru is on track to be one of the fastest-growing countries in Latin America this year.

"Investment is vital to keep (economic) growth rates above 6 percent," Castilla said, adding that the investment program would begin in May and that 40 percent of total funds for the $10.35 billion investment plan would come from the public sector.

Much of the investment will be focused on infrastructure schemes, he said.

In an interview with Reuters last week, Castilla said he has ramped up public investments by 30 percent this year after last year's restrictive fiscal stance.

Private-sector investment is also recovering as confidence builds in the government of President Ollanta Humala, a former left-wing hardliner who took office in July after recasting himself as a market-friendly centrist.

Castilla said private sector investments should rise 10 percent this year, better than in recent months, but still lagging the brisk rates registered nearly two years ago when the Andean country's economy was growing by almost 10 percent.

*Reporting by Omar Mariluz and Marco Aquino; Writing by Luis Andres Henao Editing by W Simon

Reuters (Estados Unidos)

 


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