Peru Business Opportunities
Peru was the seat of several prominent Andean civilizations, most notably that of the Incas (whose empire was captured by the Spanish conquistadors in 1533). The country is the third largest in South America, located in Western South America, bordering the South Pacific Ocean, between Chile and Ecuador.
- Key Industries:
- Petroleum Extraction and Refining, Natural Gas, Mining and Refining of Minerals/Metals, Fishing and Fish Processing, Textiles, Clothing, Food Processing, Steel, Metal Fabrication
- Key Imports:
- Petroleum and Petroleum Products, Plastics, Machinery, Vehicles, Iron and Steel, Wheat, Paper, Medicines and Vaccines
- Key Exports:
- Copper, Gold, Zinc, Crude Petroleum and Petroleum Products, Coffee, Potatoes, Textiles, Asparagus, Fish Meal, Natural Gas
In 2016, the country’s leading markets for exports were US 15.2%, China 22.2%, Canada 7.0%, and Switzerland 8.1%. Key suppliers were US 20.7%, China 22.7%, Brazil 5.1%, and Mexico 4.5%.
Peru and the U.S. signed the U.S.-Peru Trade Promotion Agreement (PTPA) in February 2009. Several changes to its environmental and intellectual property laws were made to allow PTPA to enter into force, which occurred on February 1, 2009. Since PTPA has been in effect, trade between Peru and the U.S. has essentially doubled.
Business and Market Sector Opportunities
Commodities - Agriculture • Manufacturing • Telecommunications • Construction • Mining • Private Investment • Banking • Exports • Energy
Economic Background and Situation
Peru has continuously improved its GDP growth rate for the past 5 -6 years, helped by 1) market-oriented economic reforms, 2) privatizations in the 1990s, and 3) programs since 2001 to promote trade and attract investment. The current President and his economic team have continued these policies.
Recent expansion has been driven by construction, mining, private investment, exports, and domestic consumption. Inflation (annual average) jumped to 5.8% in 2008; fiscal surplus (third year in a row) was 2.1% of GDP. Peru's economy is well managed (better tax collection and growth, increasing revenues, and expenditures keeping pace).
Private investment continues to rise and is becoming more broad-based. The country achieved investment grade status in 2008. Administration is pursuing decentralization initiatives, and more focus on small businesses. Peru weathered the 2008 global financial crisis well.