Ollanta Faces Challenges of a Slowing Peruvian Economy

These days, Peruvian President Ollanta Humala is in a tight spot. The economy in Peru is not all that bad and Peruvians are consuming more than ever. Also, domestic demand for products and services is increasing, signaling at economic growth in Peru. However, Humala has much to worry about.

The economic growth outlook for 2013 has been reduced to 6.1 from a previous forecast of 6.3%. The main culprit as others have noted, is the Chinese economy. Chinese economy has not gained much lately and its economy has taken a backseat, thanks to weakening currency, troubled manufacturing sector and a host of other problems.

Peru, which depends on its minerals for its foreign exchange, is dependent on money earned through exports and China is one of its biggest consumers. Though the economy in Peru is doing well, global economic slowdown continues to affect Peru as well.

Humala has used much of the money earned through mining to fund social projects but people in remote areas have often felt left out and have demanded that the government allocate money to distant communities within Peru. If Peruvian economy does not see growth, Humala will have a lot of answering to do.

Jude C

I am a travel enthusiast who has closely worked with different communities in India. My interests range from alternative rock to English literature. I also happen to love cats a lot.

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