Economy
From The Report: Peru 2016
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In the 10 years to 2014 the Peruvian economy experienced rapid growth, averaging 6.2%, placing Peru among the fastest-growing economies in the region. In 2014 Peru was the seventh-largest economy in Latin America and Caribbean, with a GDP of $202.9bn. However, lower commodity prices and resulting lower export revenues for some of its key exports saw Peru’s growth slow considerably in 2015, to an estimated 2.5% according to the IMF. The El Niño weather pattern, which is expected to negatively affect the agriculture, fishing, trade and transport services sectors, the general elections in April, and slower demand from China are some of the challenges facing the Andean economy in 2016. Nonetheless, the IMF expects a rebound, forecasting growth of 3.3% for the year, driven primarily by increased mining activity. This chapter contains interviews with Alonso Segura, Minister of Economy and Finance; Ana Maria Carrasquilla Barrera, Chairman of the Board and Executive President, Latin American Reserves Fund; Carlos Herrera, Executive Director, ProInversión; and Dionisio Romero, President, Grupo Romero.

Articles from this Chapter

Overview

Natural assets: A resource-rich landscape provides a firm foundation for resilience and recovery
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In 2014 Peru was the seventh-largest economy in the Latin America and Caribbean region, with a GDP of $202.9bn. According to data from the World Bank, this represented 3.2% of total regional GDP, behind Brazil (37.2%), Mexico (20.4%), Argentina (8.6%), Venezuela (8.1%), Colombia (6.0%) and Chile (4.1%). On some rankings using purchasing power parity, however, Peru is higher up the table, listed as the sixth-largest Latin American – or fifth-largest South American – economy. The population totalled…

Analysis

Responsible spending: Fiscal policy takes time to stimulate the economy
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Faced with slower GDP growth in 2014 and 2015, Peru is working to reinvigorate economic expansion through a series of counter-cyclical fiscal measures, aimed at developing infrastructure and education in particular. However, these spending packages have so far met with mixed results and will likely require more time to yield the broader benefits envisaged. Mario Guerrero, head of economic research at the Canada-based Scotiabank, told OBG that the key issue is that around two-thirds of total government…

Interview

Future alignments: OBG talks to Alonso Segura, Minister of Economy and Finance
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Interview:Alonso Segura Considering the slow external economic environment, what actions can the government take to support sustained economic growth? ALONSO SEGURA: The international environment has been characterised by a decline in commodity prices, an increase of risk perception and lower global demand. Nevertheless, the Peruvian economy has been resilient and is showing a gradual recovery that is not shared by other regional economies. For example, in 2015, while the Latin American…

Analysis

Strength through diversity: Repositioning special economic zones for growth
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Peru has been promoting different types of special economic zones (SEZs) for a number of years, in an effort to support economic diversification, regional development and international trade. By 2015 there were three special entities designated as export, transformation, industry, marketing and service centres (Centros de Exportación, Transformación, Industria, Comercialización, y Servicios) and known by their Spanish acronym as CETICOS. These CETICOS were based in Ilo, Paita and Matarani. A fourth…

Interview

Streamling projects: OBG talks to Carlos Herrera, Executive Director, ProInversión
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Interview:Carlos Herrera What can be done to expand the government’s capacity to approve and evaluate new public-private partnership (PPP) schemes? CARLOS HERRERA: In September 2015 the Ministry of Economy and Finance published Legislative Decree No. 1224, seeking to reform and simplify the current legal framework for PPPs. It includes the implementation of the “PPP multi-year investment report” that will contribute to a better control of long-term commitments, signalling the…

Interview

First things first: OBG talks to Dionisio Romero, President, Grupo Romero
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Interview:Dionisio Romero How can partnerships between corporations and small and medium-sized enterprises (SMEs) incentivise micro and small companies to formalise? DIONISIO ROMERO: In Peru, 99% of businesses are micro and small enterprises. It is no coincidence that we are recognised as the most entrepreneurial country in the world. According to the “2015 Global Microscope on the Environment for Financial Inclusion” report, Peru has offered the best climate for microfinance and financial…

Analysis

Specifics in the Pacific: New regional agreement spearheads Peru’s trade strategy
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The Pacific Alliance is an integration agreement created in 2011 between Chile, Colombia, Peru and Mexico, with several other countries expected to join the near future. The first formal proposal had been tabled by then-president, Alan García, who convened a meeting with the leaders of the three other countries on April 28, 2011. The meeting concluded with the Lima Declaration, calling for an alliance to advance free trade, described as the free movement of goods, services, resources and people.…