An International Monetary Fund mission on Friday lauded Peru's economic progress in 2004, citing export-led growth and strong domestic demand as major successes this year.
The IMF said in a statement that "economic growth has accelerated, led by exports, private investment and greater dynamism in employment and consumption."
Peru's economy has been one of the fastest growing in Latin America since 2002, and this year is forecast to expand up to 5 percent.
Exports are also expected to surpass an $11.4 billion goal this year, helped by strong demand for textiles, farm goods and high international metals prices. Peru is the world's No. 5 copper producer and No. 6 gold producer.
The IMF said it expected Peru to control inflation despite rising prices due to high world oil prices and said it supported government plans to reduce the fiscal deficit to 1 percent of gross domestic product (GDP) next year.
Peru expects to close this year with a deficit of 1.4 percent of GDP, down from a 1.9 percent deficit in 2003.
The IMF in June approved a 26-month $422.8 million stand-by program for Peru, which will run through mid-2006.
The program replaces a previous two-year $380 million program that expired earlier this year. Peru did not draw on the previous credit line.