* Peru to provide stimulus of between 0.4 and 0.5 pct GDP
* Government responds to "deterioration" in global economy
* Finance Minister says could take additional measures
(Adds details on decrees, Peru economy)
LIMA, Sept 19 Peru passed a series of decrees
on Monday allowing the government to accelerate spending on
infrastructure in order to stoke the local economy and fend off
fallout from a new global economic crisis.
Finance Minister Luis Miguel Castilla said the decrees were
"preventive" and responded to a "deterioration in the external
"The initial fiscal stimulus we calculate between 0.4 and
0.5 percent of gross domestic product, this will maintain a
fiscal surplus of above 1 percent this year," he told
Peru is the world's No. 2 copper producer and minerals
account for around 60 percent of its exports. Anemic growth in
the developed world could reduce the demand for raw materials.
The measure will provide Peru's central and regional
governments with 890 million soles ($324 million) to build
roads and complete other infrastructure projects.
A second decree allows the ministers of housing, health and
education to use available funds for investment projects.
Peru's economy grew 8.8 percent in 2010, one of the world's
fastest rates. The economy is expected to expand between 6 and
6.5 percent this year.
Central Bank President Julio Velarde cited less public
spending as a key reason for slowing growth last week, and said
it was important for the government to speed up investment
plans that had been delayed. For details, see [ID:nS1E78E10Z]
Castilla said the government would take additional action
"In the future there will possibly be other measures meant
to ensure that the economy continues to grow and can handle any
onslaught that comes from abroad," he said.
($1 = 2.74 Peruvian soles)
(Reporting by Terry Wade, Marco Aquino and Caroline Stauffer;
Editing by Leslie Adler and Diane Craft)