Peru's Finance Ministry predicts the economy will grow 2.2 percent this year _ down from an initial forecast of 5 percent _ due to lower demand for exports, according to AP. The ministry says that the South American country's economy shrank 1 percent in the second quarter _ the first quarterly contraction in eight years. It compared to 11.7 percent growth in the second quarter of 2008. The economy grew 9.8 percent for all of 2008, but plunged to 0.3 percent in the first half of 2009, compared to 11.2 percent in the first half of 2008. The Ministry said Sunday that the economy is rebounding with a $3 billion government stimulus plan and rising mineral demand. Peru's budget is set to increase by 13.1 percent in 2010 to $27.2 billion.
