 
On 8th December 2008, President Alan Garcia announced the Government's Fiscal Stimulus Package, a set of measures designed to strengthen the Peruvian economy and maintain its output at a high level in spite of the global economic downturn. The plan aims to mobilize US$ 13 billion in additional resources.
The main objectives of the plan are:
-To guarantee at least a 5.5% minimum growth rate in 2009, aiming for 6.5%.
-To avoid any liquidity or credit crunches that could interfere with the current dynamic rhythm of growth.
-To sustain domestic demand and generate employment.
-To strengthen access to capital markets.
-To foster private investment.
The main measures of the plan include increasing and accelerating government expenditure by US$ 3.2 billion, extending credit lines to small and medium enterprises with emphasis on export oriented firms and reducing the queue time for private investments requests awaiting government approval.
The breakdown of key fiscal stimulus areas from the government’s initial US$ 3.2 billion injection will be as follows:
-Additional investments US$ 1.61 bn
-Construction US$ 1.01 bn
-Credit lines for SMEs and Export oriented firms US$ 43 million
-Social and workforce support US$ 18 million
On 28th January, Economics and Finance Minister Luis Carranza provided further details as the first phase of the plan was put into execution with an initial S/. 4.5 billion Peruvian soles (US$1.38 billion) in investment in infrastructure and social programmes including the following measures:
-Petrol prices reduced by 10%
-S/. 3 billion (US$ 918 million) invested in social programmes
-Support of non-traditional exports by increasing the drawback from 5% to 8%
-Measures to eliminate red tape in private and public investments in production and social infrastructure
-Regional trusteeships created to implement funds in investment projects
Minister Carranza stated that through these measures public investment was expected to rise by 52% this year. In addition to government expenditure, the Peruvian and Lima Chambers of Commerce, the National Society of Mining and Hydrocarbons and other private sector entities have estimated private investment to grow between 10.4% and 5.7% in real terms in the upcoming year, possibly reaching as much as US$ 33.1 billion. Private investment in 2008 was US$ 28.8 billion.
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