UPDATE 1-Peru fourth-qtr GDP grows 8 pct vs year earlier

LIMA, Feb 28 (Reuters) - Peru's gross domestic product grew 8 percent compared with a year earlier, fueled by soaring domestic demand and investment, the government's statistics agency said on Wednesday.

The growth rate was in line with a 7.9 percent figure estimate forecast last month by the Economy Ministry.

Fueling fourth-quarter growth was domestic demand which grew by 12.4 percent against a year earlier, the National Statistics Institute (INEI) said.

Gross capital fixed investment rose by 19.9 percent compared with the same quarter in 2005, it added.

The INEI statement gave no comparative growth figures for the third quarter.

The INEI on Feb. 15 said the GDP grew 8.03 percent in 2006, the fastest annual growth rate in 11 years.

It also then reported that the GDP grew 8.9 percent in December compared with December 2005, beating analysts' forecasts.

Monthly GDP figures are closely watched by analysts, drawing more market attention than quarterly GDP growth data. The latter is issued weeks after data is made available for the final month of each quarter.

Peru's economy has grown above 5 percent for the last five years, its highest average rate for a five-year period since the early 1970s.

Peru's economy has now seen eight years of consecutive growth, helped by its mining industry, buoyed by high world prices for metals.

The government has estimated economic growth of between 6 percent and 7 percent for 2007.

For details please on fourth-quarter GDP growth, please go to:here (Reporting by Walker Simon; Editing by Diane Craft; walker.simon@reuters.com, +511 221-3-30)