Peru’s economic growth depends on China, says Castilla

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Peru’s Finance Minister Luis Miguel Castilla said on Wednesday that next year the country’s economic growth would depend on China’s economic stability, due to the latter’s high demand for natural resources.

Peru’s economy, Castilla said, is estimated to grow by about 6 percent in 2013, but warned of negative consequences if China’s economy were to slow down, Gestión reported.

Castilla said Peru could be affected if China’s economy grew “below 7 percent, or suffered a sharp drop,” but said he still maintained his growth forecast.

"Our performance,” Castilla said, “will depend a lot on growth in China, which has become a dominant country, not just because of its bilateral trade with Peru, but because of its role in the weight of raw materials.”

According to Gestión, last year 38 percent of Chinese investment in Latin America was invested in Peru.

Peru’s Finance Minister Luis Miguel Castilla said the country’s economic growth would depend on China’s economic stability, due to the latter’s high demand for natural resources.

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