Peru's Economy Slows Down

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Peru's finance minister says his country could grow less than last year because international markets are unstable. If necessary an increase in the stimulus package is an option.

Peru's Finance Minister Luis Miguel Castilla says the economy should grow 5.4 percent next year.

That's a bit less than previously expected due to sluggish growth abroad and the debt crisis in Europe.

Castilla says international turmoil has affected Peru.

[Luis Castilla, Peru's Finance Minister]:
"Obviously all eyes are on Europe and how they are going to solve the debt crisis and the possible implications of that on the international monetary system."

Peru's economy is on track to grow nearly seven percent this year, one of the fastest paces in Latin America, but will be affected by a euro-zone crisis.

[Luis Castilla, Peru's Finance Minister]:
"Our economy is vulnerable -- as we've said on many occasions -- to the ups and downs of what happens in the rest of the world."

Castilla was appointed by President Ollanta Humala to assure investors Peru's pro-market economic model will stay intact.

He says the country's stimulus package could be increased by an additional 1.5 percentage points.

The stimulus package is currently equivalent to two percent of gross domestic product.

That would be the same level provided during the global financial crisis of 2009.

Castilla said Peru could achieve the region's fastest growth in 2012.