The Peruvian Republic
Peru has been the fastest-growing economy in Latin America for the last decade, posting positive rates for 18 years until last year, despite the global slowdown since 2012. It is thus that the country was able to record a growth rate annual average of 5.9% in the period 2005-2015, almost twice the regional average of 3%.
According to the National Institute of Statistics and Informatics (INEI), the poverty rate decreased by 36 points between 2004 and 2015, from 58.7% to 21.8%. Also, according to the same entity, the Gross Domestic Product of 2016 grew 3.9% in 2016.
The Peruvian Andes have large mineral deposits, which were wisely used for centuries. This country has the largest reserves of silver in the world, as well as the largest gold, lead and zinc in Latin America, according to the Ministry of Energy and Mines. In 2016 2.35 million tons of copper were exported; 4,374 tons of silver, and 153 tons of gold.
On the other hand, the Peruvian Amazon contains rich deposits of oil and natural gas, as well as forest resources; In addition, the coast is renowned for its maritime resources and export oriented agribusiness, with star products such as asparagus, blueberries, table grapes, avocados, organic bananas or paprika.
Among the priorities of the new government is to guarantee access to drinking water for all Peruvians by 2021 – the year of the bicentennial of Peru’s independence – and to expand access to sanitation services. President Pedro Pablo Kuczynski has also set out to counteract inequality by improving the level of social services – in particular education and health – and promoting development in rural areas.
Following this line, the government budget allocated for the year 2017 amounted to S /. 142,471,518,545-an increase of 4.7% over the previous year-, prioritizing five sectors: national security, justice, education, health and infrastructure, with education receiving the largest allocation (18.4% of the total). Financing for water and sanitation projects increased 71.6%.
In order to maintain the region’s leadership in economic growth, the government has
been implementing measures to reduce bureaucratic barriers to investment, encourages the formalization
of small enterprises and stimulates capital investment in infrastructure, especially in projects aimed at facilitate the diversification of key sectors. With this, it is expected to generate about 3 million jobs in the next four years.
Peru has an extensive network of trade agreements, which generate opportunities for the development of our exportable and business sector. These places us at the level of the region as a country
that has been concerned not only to offer its products to the international market, but also to show opportunities in our domestic market, allowing to contribute to reduce costs for our consumers and for our domestic production.
Currently, Peru has trade agreements with the main economies of the world, such as the United States, China or the European Union. It also belongs to trade blocs such as the Asia-Pacific Economic Cooperation Forum (APEC) or the Pacific Alliance.