Traditional exports, principally metals, have helped make Peru one of the fastest growing Latin American economies over the last decade. However, falling commodities prices have taken their toll on export revenues and GDP growth. The focus of the Ministry of Production (PRODUCE) in recent years has, therefore, been on diversifying the Peruvian economy and providing greater added value to production. Under the leadership of Minister Piero Ghezzi, PRODUCE has set the target of returning Peru to 7%…
Industry & Retail
From The Report: Peru 2016
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With falling commodity prices taking their toll on Peru’s export revenues and GDP growth, the focus of the Ministry of Production (PRODUCE) has turned to the diversification of the economy and provision of greater added value to production. PRODUCE has set the target of returning Peru to 7% growth rates through private partnerships that will develop the country´s secondary and tertiary industries. Despite these efforts, the industrial sector is experiencing a slowdown, with sector GDP amounting to $9.8bn in the first five months of 2015, a 2.6% year-on-year decrease. Meanwhile, Peruvian retailers look set to take stock and focus on maximising revenues rather than rushing to open more floor space. The days of double-digit consumer growth may be a thing of the past, but medium-term expansion of between 3% and 4% in 2016 presents attractive prospects. While per-capita incomes remain low by regional standards, recovering commodities prices are expected to support the retail sector’s long-term potential.