Peru central bank may trim economy's potential growth rate

Reuters

LIMA, Oct 11 (Reuters) - Peru's central bank said on Fridayit is considering lowering the economy's potential growth rateto around 6.2 percent per year from 6.4 percent on expectationsglobal growth will be weaker in coming years.

In 2014 the economy will likely expand by 6.2 percent, saidCentral Bank Research Director Adrian Armas, and that could be amore realistic pace for future Peruvian growth.

The potential growth rate is the maximum rate the economycan expand without causing too much inflation.

"Our forecast for growth next year is 6.2 percent and infact we will probably be slightly revising down the potentialgrowth of gross domestic product to around those levels," Armastold reporters in a conference call.

Peru, a top producer of copper, gold and silver, has enjoyeda mining-fueled boom over the past decade, but softer demandfrom major buyers like China and weaker mineral prices haveslowed economic growth more than expected this year.

"We're seeing a new international scenario, a scenario inwhich we see less growth in emerging economies and that means itis harder to sustain higher growth levels," said Armas.

The economy expanded 5 percent in the first seven months ofthis year compared to the same period a year ago.

The central bank expects the economy to grow 5.5 percent in2013, having trimmed its forecast last month from an earlierestimate of 6.1 percent.

Last year Peru posted a 6.3 percent clip, one of the fastestrates in the region.

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