LIMA: Peru's central bank on Friday cut its view of economic growth in the global minerals producer this year to 4.8 percent from its previous forecast, made in December, for an expansion of 5.2 percent to 5.5 percent.
The central bank also said in a quarterly report that the economy likely grew 2.4 percent in all of 2014, under its previous estimate of between 2.6 and 3 percent and well below surging rates that topped 5 percent in previous years. Growth figures for December and full-year 2014 are scheduled for release in mid-February.
The central bank downgraded its view of this year's fiscal deficit to 2.0 percent of gross domestic product from its October estimate of 0.3 percent.
Last year the fiscal deficit was likely 0.1 percent of GDP, the bank said, reversing its previous view for a small surplus.
The government of President Ollanta Humala has introduced several stimulus and economic reform packages over the past year in a bid to reactivate growth dragged down by slumping mining and manufacturing activity.
Peru is the world's third biggest producer of copper and silver and the fifth biggest gold producer. Mineral exports typically make up nearly 60 percent of exporter earnings, which have slipped on low prices and weak gold and copper output.
The trade deficit will likely be $2.8 billion this year, the same size as the estimated shortfall in 2014, the central bank said. Previously the bank had forecast a $1.6 billion trade deficit in 2015 and a $3 billion deficit in 2014.
The central bank said it now sees a slightly wider current account deficit this year - 4.4 percent of GDP instead of the 4.3 percent gap it estimated in October.
Last year the current account deficit was likely 4.4 percent of GDP, smaller than the bank's October forecast for a 4.7 percent deficit.
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