Peru is enjoying a prolonged period of economic growth that favors the generation of attractive investment perspectives and the increase of both national and international investors’ confidence. Adding up to that scheme is the new foreign trade strategy that is aimed to eliminate commercial barriers.
The Peruvian economy is consolidating as one of the most dynamic in Latin America. The gross domestic product (GDP) has been experiencing an upward trend since 1999, and registered annual rates of more than 5% between 2004 and 2009, when it peaked at 9.1%. Having quickly recovered from the global financial crises, Peru reached an average growth rate of more than 4% between 2010 and 2017. Forecasts by the International Monetary Fund indicate that Peru’s GDP will reach an average annual growth rate of more than 3% for the 2018-2021 period.
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.
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, Thailand, Singapore, Canada, the People’s Republic of China, the European Union, Japan, Chile, Mexico, Panama, South Korea, Guatemala, Brazil, Singapore, Venezuela, Honduras, Costa Rica, as well as with the European Free Trade Association (EFTA), the Pacific Alliance, the Andean Community of Nations (CAN), the Asia-Pacific Economic Cooperation (APEC), MERCOSUR, the Trans Pacific Partnership (TPP) the World Trade Organization (OMC), and is negotiating new FTA’s with India and Australia, among others.
Peru has more than sextupled its exports in the last two decades from US$ 6.7 billion in 1997 to US$ 44.3 billion in 2017. Non-traditional exports (goods processed by local industries) have increased by about five fold and surpassed US$ 11.7 billion in 2017.