LIMA, Jan 12 (Reuters) - 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 McCool)