With the world economy in the throws of a recession, Peru seemed to be coming out as one of the countries that seem to be thriving. Early this month the Economist even went as far to say that Peru could be "recession proof", however now this idea may be called into question as the Peruvian government has reported only a 3.1% year-to-year growth in March. This comes after it reported a 9.8% growth in 2008.
With the economy starting to slow due to external reasons, President Alan Garcia has a tough job ahead of him to insue continued growth, keeping in mind his already low approval rating and the upcoming 2011 elections. (Statistics from the AP Press, Reuters, and the Economist)
See the Reuters report below:
"LIMA, March 17 (Reuters) - Peruvian President Alan Garcia lashed out at bureaucrats on Tuesday, telling them to show their "patriotism" by working harder to implement an economic stimulus package as a slowdown hits the Andean country.
Garcia's comments came a day after Peru was stung by its weakest monthly economic data in nearly five years, which could hurt Garcia's approval rating, now at 34 percent.
Peru, which had been one of Latin America's fastest growing economies, grew just 3.14 percent in January from the same month a year earlier, well below the 9.8 percent rate of 2008, which was a 14-year high.
"We need more patriotic spirit to approve public works," Garcia said at a road opening ceremony in Tarapoto, a town in northern Peru.
"There are hundreds of public works that are stalled because Peru has bad bureaucrats who are scared of implementing them and putting the country first," he said.
The president also told his cabinet, provincial leaders, and mayors to act "urgently" to create jobs and build infrastructure projects.
Garcia has unveiled a stimulus package that includes about $3.1 billion in investments in its first phase, but critics have said its effectiveness may be undermined by a slow-moving bureaucracy and a reliance on provincial governments.
The government says the stimulus package will help keep economic growth at 5.0 percent this year, but the Lima Chamber of Commerce said expansion could be as little as 2.8 percent, and Morgan Stanley has cut its projection to 0.9 percent. (Reporting by Marco Aquino and Terry Wade)"
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- ▼ March (12)