Living in Peru : your everyday companion

(LIP-wb) -- Peru's economy is one of the most solid and fastest growing in Latin America. A report published by "Centro de Investigación Empresarial (CIE)" of Lima's Chamber of Commerce (CCL) indicates that in 2006 Peru has the third highest economic growth in the region, registering an expansion of 7,2%, which is far higher than the average (4,6%) of the South American continent.

According to CIE, only Argentina and Venezuela surpass Peru, both with rates near 8,3%.

The economic boom in Argentina is mainly based on the dynamics of domestic demand and investment. Venezuela's growth on the other hand greatly benefits from rising oil prices.

Bolivia, Brazil and Paraguay are the Latin American countries with the smallest growing numbers, 3,1%, 3,2% and 3,2%, respectively.

There's no doubt that Peru's economic growth in 2006 is sustained in a large part by growing national consumption.

The fastest growing economic sector in Peru is construction with 14,9% whereas retail industries increased by 9.1%, a sure sign of greater spending power among Peru's population.

The report also states that Peru has the second highest growth in Latin American exports with 36,6%, only surpassed by Chile (37,5%), both numbers way beyond the regional average of 17,2%.

National exports will close the year with a projected total of US$ 23.68 billion according to the report. CIE of CCL clarified that these results are bolstered by a dynamic mining sector that benefits from a greater worldwide demand of raw materials. 

The report also projects a 4.7% inflation rate in all of Latin America, representing a decrease of 0.9% compared to 2005 (5.6%). The good results would explain the lower consumer price index.

The report projects that Peru will register the lowest inflation rate in Latin America with 1,7%, despite the rise of international petroleum prices. Peru is followed by Brazil (3,1%), Chile (3,3%), Ecuador (3,6%) and Mexico (3,7%).

Venezuela, Argentina and Paraguay will register the highest inflation in 2006, with 15,8%, 10% and 8%, respectively.