IMF sees Peru growing 7 pct in 2008 after review

LIMA, Dec 19 (Reuters) - Peru's economic performance is surpassing expectations and growth in 2008 should be between 6 percent and 7 percent, even as the global economy slows, the IMF said on Wednesday.

The IMF board also said Peru passed its second review under a $270 million standy loan agreement signed between the lender and the government of President Alan Garcia in January of this year. The pact lasts for 25 months.

"Things are going very well (in Peru)," said Martin Cerisola, chief of the mission from the International Monetary Fund that visited Peru last month.

"Peru could grow 6 or 7 percent next year, in a context of lower commodities prices and a slower international economy," he said on a conference call.

Peru's government expects to grow more than 7 percent next year after growth this year of around 8 percent.

Low inflation, a solid fiscal position and a diversifying economy based on investments, consumption and exports are fueling growth in the Andean country, officials said.

Javier Silva-Ruete, an executive director at the IMF, said if the good times continue Peru may not need to have a standby loan agreement.

He also said a bilateral free-trade deal with the United States and pending deals with other countries will boost growth.

"Peru will grow faster in the future than it has in the past," he said. (Reporting by Terry Wade; Editing by Diane Craft)