Peru is enjoying a prolonged period of economic growth that promotes attractive investment opportunities and an increase of both national and international investors’ confidence. Adding up to this advantage is the new foreign trade strategy that aims to eliminate commercial barriers.

The Peruvian economy is 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%.

peruGDP-currentprices

Source: FMI – World Ecconomic Outlook October 2019

Source: FMI – World Economic Outlook April 2020

* Projections account for Covid 19 impacts estimated as of April 2020. 

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.

Source: FMI – World Economic Outlook April 2020

* Latin American average includes Spanish speaking South America plus Brazil and Mexico, and excludes Argentina and Venezuela.

The investment environment is stable and favourable, based on non-discriminatory 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 capital seeking new business alternatives.

Peru Credit Ratings
Moody’s S&P Fitch
Long term debt in foreign currency A3 BBB+ BBB+
Long term debt in local currency A3 A- A-

 

Source: MEF Updated January 21st, 2020

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 recently signed a FTA with the United Kingdom to ensure continuity of trade conditions after the UK concludes its departure from the EU.

Peru has increased its exports more than sevenfold 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 increased sevenfold and surpassed US$ 13.8 billion in 2019.