WORLD BANK REPORT CRITICISES PERU ECONOMIC PLAN

  a confidential world bank report on the
  peruvian economy said the government's strategy does not offer
  good prospects for medium and long-term growth and is likely to
  quickly lead to inflation.
      The report, published today by an economic monthly, the
  peru report, said the success of president alan garcia's
  government in stimulating output last year to achieve eight pct
  gross domestic product growth "represents gains in the short
  term at the expense of the long."
      Government officials had no immediate comment on the
  report, which advised a reduction in the overall size of the
  public investment programme and greater emphasis on the
  preservation of peru's export potential.
      The report said that although the government had succeeded
  in cutting inflation 50 pct a year in the first half of 1985 to
  under 70 pct, its stabilisation and reactivation programme was
  encountering increasing difficulties.
      "an early renewal of inflationary pressures, linked to
  monetary expansion, exchange rate devaluation and an easing of
  price controls, appears not improbable," it added.
  
  

