Peru Economic Research Highlights

Peru Economic Research & Views

Latin America remains a key focus of China’s Belt and Road Initiative

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As part of efforts to build more resilient global supply chains, Chinese investment in Latin America and the Caribbean under the decade-old Belt and Road Initiative (BRI) is continuing to drive major infrastructure projects and fuel trade. Since its inception in 2013 the BRI has played an important role in powering global economic growth, with emerging markets exporting raw materials to the country and importing refined products in return. However, the country’s transition from a manufacturing-driven economy...

The future of commercial drone delivery in global and local supply chains

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Emerging markets are capitalising on commercial drone technology to overcome logistics challenges and revolutionise supply chains for many goods and services, with expected benefits for last-mile delivery. While unmanned aerial vehicles (UAVs) are often associated with military usage, commercial UAV usage has grown substantially in recent years as e-commerce and logistics companies increasingly look to drones to enable more efficient delivery. Research firm GlobalData predicts that commercial drones...

How digital banking is transforming access to finance in Latin America and the Caribbean

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Despite wider economic challenges such as inflation and supply chain disruptions, digital banks and neobanks are continuing to attract new customers and accelerate financial inclusion in Latin America and the Caribbean. Neobanks use apps, software and other technologies to operate exclusively through digital platforms. They are usually limited to bank accounts and cards because they often lack credit institution licences, while digital banks offer the full suite of traditional banking services online...

Global CEO Survey: What is on the horizon for emerging markets?

While the recovery period following the Covid-19 pandemic saw the unlocking of major capital in emerging markets, inflationary pressures, fluctuating commodity prices and geopolitical concerns have since tempered the global economic outlook for 2023. Balancing opportunity and risk has become a priority for shareholders and investors, but emerging markets have remained resilient. Some regions, such as the Gulf, are looking to funnel elevated hydrocarbons revenue into sustainable mega-projects, whereas leaders in Asia...

The emerging supply chains for lithium in Latin America

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With the success of the energy transition closely tied to the ability to store solar and wind power, battery manufacturers are zeroing in on Latin America’s so-called lithium triangle of Argentina, Bolivia and Chile. These three countries alone contain 52m, or 53%, of the 98m tonnes of global lithium reserves, according to the US Geological Survey. In late January Germany’s Chancellor Olaf Scholz visited Argentina and Chile to secure lithium supply for carmakers Mercedes-Benz Group and Volkswagen to..

Why some Latin American currencies are outperforming developed economies

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Two Latin American currencies – the Brazilian real and the Mexican peso – have outperformed G10 nations and other emerging markets in 2022 despite the sharp appreciation of the US dollar. In late September 2022 the Dollar Index, which compares the dollar to a weighted average of six other currencies, reached a 20-year high, at 114 points. However, as of early October the real was up 7.2% against the dollar in 2022, and the Mexican peso was up 2.5%. The Brazilian real started 2022 at 5.5 to the dollar, fell to a low...

Will Latin America’s transport mega-projects revolutionise trade?

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As Latin America continues its recovery from the Covid-19 pandemic, several countries are undertaking large-scale transport infrastructure projects to improve regional and international connectivity and trade. One of the region’s most ambitious projects, the Bioceani­c Corridor, aims to connect the Brazilian port of Santos on the Atlantic Ocean with the Chilean ports of Iquique and Antofagasta on the Pacific Ocean through a series of roads. Alongside this transnational motorway, space is also being left for...

How will the China-CELAC agreement boost infrastructure in Latin America?

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A number of Latin American and Caribbean countries have strengthened their ties with China after signing a wide-ranging economic and political agreement. In December the Community of Latin American and Caribbean States (CELAC), a bloc of 33 countries that includes regional heavyweights such as Argentina, Colombia and Mexico, signed the China-CELAC Joint Action Plan for Cooperation in Key Areas 2022-24. The seven-point agreement outlines plans for greater engagement and cooperation between...

After the Russian import ban, could emerging markets help meet the EU’s oil demand?

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Emerging markets are exploring opportunities to help meet the EU’s energy demand following the bloc’s announcement that it will ban seaborne imports of oil from Russia. The move, announced on May 30 and set to be implemented by the end of the year, forms part of the sanctions crafted in response to Russia’s invasion of Ukraine in February. Roughly 90% of the EU’s oil imports from Russia arrive on seaborne tankers, with the rest coming through the Druzhba pipeline. The exemption for pipeline imports...