LIMA Jan 12 Peru posted a fiscal deficit equal
to 2.7 percent of gross domestic product in 2016, smaller than
the government's target of 3 percent but above the 2.1 percent
deficit registered in 2015, the central bank said on Thursday.
The better-than-expected figure for 2016 should make it
easier for the government to reach its 2.5 percent fiscal
deficit goal this year, giving it more room to invest in
infrastructure projects to bolster flagging domestic demand.
The fiscal deficit had widened to 3.4 percent in August
shortly after President Pedro Pablo Kuczysnki took office,
prompting his government to cut public investments in the fourth
quarter that dragged on economic growth.
Peru, a leading exporter of copper, gold and zinc, has run
an annual fiscal deficit since 2014, when its economy slowed
sharply in the wake of the global commodities decline.
(Reporting By Mitra Taj; Editing by Chizu Nomiyama and Grant