During 2012, Peru’s GDP growth reached 6.3%, primarily driven by private investment and domestic consumption. These steady and favorable economic conditions continue to support our prospects as an economically strong country with sustained development; despite the slowdown of the U.S. economy, the backward trend of the Eurozone and the lower growth forecasts in major Asian countries.
Peru is currently the fifth largest economy in South America, measured by its GDP based on Purchasing-Power-Parity, according to the International Monetary Fund
(IMF); and it is in fourth place of the world’s 20 best countries and frontier markets to invest in, according to the Bloomberg Markets magazine.
The position reached by Peru primarily reflects its economic model adopted in the 1990s, which is based on the market economy, the subsidiary role of the Government, the free initiative of private investment, macroeconomic stability, trade liberalization, the promotion of local and foreign investment, the encouragement of free competition, legal stability and social inclusion.
The IMF also has very auspicious projections for Peru in the next two years. It estimates that the country will be the second fastest growing economy in South America in 2013 with a rate of 6.3% and the first in 2014 with a rate of 6.1%. In the meantime, Peru’s
Central Reserve Bank (BCRP) forecasts for the same period that the economy will grow at levels close to its potential, with a growth rate of 5.4 for 2013 and 6.2 for 2014.
Added to these favorable conditions for investment, are the free trade agreements signed by Peru in recent years to open up new markets as well as the efforts of the public- and private - sector to promote foreign investment in Peru. It should also be noted that the results of the latest PwC CEO Survey, according to major executives in Latin America, Peru together with Colombia are the preferred destinations for foreign investors, before any other country of the region.
Undoubtedly, the current good economic performance should be used to lay the foundations for long-term development and growth. For this purpose, significant investments in education are essential as well as investments in technological innovation and development; implementation of major infrastructure construction projects; improvements in energy supply as a way to generate the conditions required for social development as well.
This is the sixth consecutive year in which PwC has published Doing Deals in Peru with the latest and most reliable information on the major macroeconomic, tax, corporate, labor, financial, social, and industrial matters. We are confident that the contents of this publication will be a very useful tool to help you in your decision-making process to begin doing business in our country.
Our 89 years of experience providing business advisory services in Peru is always at your service to assist your organization to accomplish its business objectives.
Territory Senior Partner