Lima – On July 28 Pedro Pablo Kuczkynski took charge of the presidency of the Republic of Peru, after narrowly defeating Fuerza Popular candidate, Keiko Fujimori.
After years of sluggish economic growth – mainly due to the fall in commodity prices and subsequent slowdown in government-back projects – Kuczynski’s victory generated a wave of optimism among the public, the private sector and the international community. Every change of administration comes with multiple challenges, especially given the current regional and global economic and political turmoil. Additionally, the previous administrations’ failure to achieve many of its goals during its five-year rule resulted in a cooling of the relationship between the public and the private sectors.
Peru has continued to see solid economic fundamentals, even as oil and commodities prices have dipped. The country is focusing on new avenues for expansion, such as mining, tourism and non-traditional exports.
Optimism was a word seldom used to describe emerging economies in 2016, but this looks set to change with the new year – especially in Peru. Indeed, what we might call a cautious optimism was clearly evinced in OBG’s Business Barometer: CEO Survey, conducted in Peru in the last quarter of 2016, in which more than 40 top-tier CEOs shared their sentiment with us. The results of the survey reflect a buoyant, optimistic, proactive sentiment, already a great start to the year, especially in the current international context.