Weekly Report - 1 September 2011 (WR-11-35)

“Growth with social inclusion is not a cliché but a state policy.” This was the message from Peru’s economy and finance minister, Luis Miguel Castilla, this week after he presented details of a draft budget proposal which calls for a substantial increase in spending on social programmes, as well as the education and health sectors, while preserving a rainy day fund should the global economic slowdown impact the country. The ratings agency Standard & Poor’s gave Castilla, and the administration of President Ollanta Humala, the thumbs up this week by lifting Peru’s credit rating by one notch.