Stories: Aracari Team Insights

News on Peru's Economy 2010 LIMA (Reuters) - Peru extended its economic recovery in April to bolster expectations that it and Brazil will grow the fastest in Latin America this year, though recent steps taken by the government will likely avert overheating. The Andean country's economy grew 9.26 percent in April from a year earlier, while expansion from March was a tepid 0.06 percent. Driven by surges of 21 percent in construction, 16 percent in manufacturing and 11 percent in retail, year-on-year growth in April topped the 9.1 percent forecast from a Reuters poll. The data showed Peru's economy grew at its fastest pace in 18 months. Many economists and the International Monetary Fund say Peru and regional giant Brazil will each expand up to 7 percent this year as they recover from the global crisis. "Here (in Peru) and in Brazil they have started raising interest rates, fiscal expenditure is being reduced, there's also a legal framework to stop the economy from growing too strongly," said Maria Cecilia Deza, an analyst with the local branch of Spanish bank BBVA. The Peruvian government cut public spending and put a hold on borrowing last month in a bid to cool economic growth and meet a fiscal target requiring a deficit narrower than 2 percent of gross domestic product. Last week, the central bank raised the benchmark interest rate to 1.75 percent, the second increase in as many months. But it said it decided to keep the rate "exceptionally low" because of risk factors related to global economic uncertainty. MODERATE MONTH-ON-MONTH GROWTH Tame growth from March may support comments by Finance Minister Mercedes Araoz that the economy was not overheating. Araoz said on Friday that Peru does not plan to take more steps to cool down economic growth because inflationary pressures are

Dear Friends, As you may have already heard, we are experiencing major rainstorms, flooding and landslides in the Andes of Peru. As a result, train services to Machu Picchu have been interrupted with many clients stranded both there and in Cusco without having the possibility of visiting the site. While we are in the midst of rainy season, these extreme weather conditions are quite unusual. This has happened only a handful of instances  during the past 10 years, and it normally subsides after a few days. Fortunately no Aracari clients are in Machu Picchu at the moment. For  those whose travel is underway and who are in Lima or Cusco, we are making the maximum efforts to rearrange their travel plans so they manage to visit the site when train services resume in hopefully the next few days. For those of you who are travelling or have clients starting their trips next week, there is no need to worry as things will most certainly be  back to normal. The rains have since stopped, the water levels are dropping and Cuzco is currently sunny. Please don't hesitate to contact us should you have any further questions.