Peru Rebuilds Stronger
Peru's economy escaped relatively unscathed from a devastating August earthquake. The disaster may spur privatization and a telecoms shakeup.
More than 300,000 people were displaced by a severe
earthquake that struck Peru over the summer, killing 595
people. The government has approved the first outlay of $32
million for reconstruction and received pledges of around $80
million from foreign governments and international
organizations. The 2008 budget includes $204 million for the
reconstruction of infrastructure damaged by natural disasters.
Analysts estimate the final price tag could be two to three
Regardless of financial cost, the government is confident that
the tragedy will not undermine growth. The 2008 budget
forecasts GDP growth at a conservative 6.2%, down from an
expected 7.2% this year. Exports rose nearly 20% through July,
hitting $25.4 billion, tax collection was above 15% of GDP and
inflation, while higher than last year, is still among the
lowest in LatAm, at 2.8% year to date.
"Given the current good situation...
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