Peru has been enjoying a prolonged period of economic growth that favors the generation of attractive investment opportunities and the increase of both national and international investors’ confidence. With this objective in mind, the new foreign trade strategy is aimed to sign free trade agreements with key markets.
The Peruvian economy is consolidating as one of the most dynamic in Latin America of the past two decades. Peru has almost octupled its exports in the last two decades from US$ 6 billion in 1999 to US$ 46.4 billion in 2019. Non-traditional exports (goods processed by local industries) have similarly increased, surpassing US$ 13.8 billion in 2019. Peruvian GDP in now around US$ 240 billion.
The macroeconomic policy that the government is carrying out is based on a responsible approach. As a result, the inflation rate is one of the lowest in Latin America (between 1% and 4% in the last eight years), and the fiscal and monetary accounts are kept in order. This stability allowed the country to enact a robust countercyclical response to the 2020 Covid-19 pandemia.
The investment environment is stable and favorable, based on nondiscriminatory treatment, non-restricted accessibility to most of the economic sectors, free capital transfer, and guaranteed private property. The Peruvian long-term debt has been rated “investment grade” by Standard & Poor’s and Fitch Ratings, which will allow the country to position as an attractive destination for capitals seeking new business alternatives.
To date, Peru has signed Free Trade Agreements (FTA) with the United States, Canada, the People’s Republic of China, the European Union, Japan, South Korea, Thailand, Singapore, Australia, Mexico, Brazil, Panama, Costa Rica, Guatemala, Honduras, Chile and Venezuela, as well as with the European Free Trade Association (EFTA), the Trans Pacific Partnership (TPP), the Pacific Alliance, and the Andean Community of Nations (CAN), and is negotiating new FTA’s with India, among others.