Recent trends

The Peruvian economy has shown a solid growth over the past years, boosted by market-oriented policies, economic structural reforms, and stabilization, privatization and liberalization programs started in the 1990s. This process has been consolidated with policy measures adopted since 2001 to promote trade and attract foreign investments. As a result, Peru has become, in fact, one of the most dynamic, fastest growing and stable economies in Latin America. Some data and figures include:

In 2006, GDP growth reached an outstanding 8,03%, well above regional and APEC average; 6.7% in 2005, 4.8% in 2004; 4.0 in 2003, and 4.9% in 2002.
Economic growth average since 2002 has been over 5.6% reaching 65 consecutives months of expansion, (up to February 2007).
Inflation in 2005 reached 1,5 %, with no significant changes in 2006;
Foreign currency reserves stand for 18 months of Peruvian imports;
Responsible government finances have allowed Peru to continually reduce its budget deficit to nearly zero in 2006.
Peru’s risk rating is now among the lowest in the region.
Exports have doubled its value in five years;
Stock of Foreign Direct Investments has increased 3 times in the last decade.
New commitments for investments, only in the mining sector, account over 14 billion dollars for the next five years.
Dozens of the most important enterprises, including Australians, are doing business with Peru

In 2006 external debt decreased to $22 billion and foreign reserves reached over 17 billion, as tax revenues increase and government expenditures remain under tight reins. Private investment is rising and becoming more diverse. The government has experienced successful international bond issuances, resulting in ratings upgrades. The Peruvian Government is actively promoting decentralization initiatives, and is focused on bringing more small businesses into the formal economy.

Peru’s natural diversity has meant, in economic terms, a country that is rich in resources. Peru is the world’s largest producer of silver, and is among the five world largest producers of gold, copper, zinc, lead, tin, molybdenum. Mineral exports have consistently accounted for the most significant portion of Peru’s export revenue, averaging around 50% of total earnings in 1998 to 2005.

Peru is a source of both natural gas and petroleum. In August 2004, Peru inaugurated operations of the Camisea natural gas project. Camisea gas is fueling an electricity generator and six industrial plans in Lima, with other facilities in the process of switching to gas. In a second phase, liquefied natural gas (LNG) will be exported to the west coast of the United States and Mexico. The gas and condensates from Camisea are equivalent to some 2.4 billion barrels of oil; approximately seven times the size of Peru’s proven oil reserves. The Camisea project, when completed, is expected to gradually transform Peru’s economy, catalyze national development, and turn Peru into a net energy exporter.

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