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Significance

The economy grew by 3.0% in the second quarter and by 2.4% in the first six months of 2015, according to figures published by the Statistics Institute (INEI). This compares with a growth rate of 1.9% over the previous twelve-month period. Peru has been hit by a sharp decline in the value of minerals exports over the last two years, though production is on the increase as new mines come on stream.

Impacts

Inflation is rising as currency depreciation accelerates.

Peru will compare favourably with other South American countries in terms of both growth and inflation.

High reserves and relatively low debt levels will help cushion Peru from market aversion to emerging economies.

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