Exporting to Peru - Market OverviewPeru - Market Overview
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Peru continues leading Latin America as one of the fastest growing economies in the region, with an average annual growth rate of 5.7% per year between 2005 and 2016. Peru’s economy grew 3.9% in 2016 and is forecast to grow 2.7% in 2017. The government’s counter-cyclical stimulus spending, consumption, and private investment are the driving forces of this growth. The mining sector and agricultural exports continue to drive the economy, offsetting the losses from the collapse of the Southern Gas Pipeline project and the impact of the Odebrecht scandal on private sector-led investment. The central government has initiated plans for Public Private Partnership infrastructure projects and announced an updated catalog of 61 projects valued at over USD 14 billion.
As the economy has grown, poverty in Peru has steadily decreased, falling by more than half from 56% in 2005 to 20.7% in 2016, according to the Peruvian Information and Statistics Agency (INEI). Peru’s steady economic growth began with the pro-market policies enacted by former President Alberto Fujimori in the 1990’s. All subsequent governments have continued those policies, including the administration of President Pedro Pablo Kuczynski, which began its five-year term in July 2016. President Kuczynski campaigned on dislodging stalled infrastructure projects and bringing potable water and sanitation to 100% of Peruvians by 2021. President Kuczynski is a former World Bank official who is committed to private sector-led growth and macroeconomic stability. He is married to an American and is very pro-U.S.
Peru’s currency, the “Sol” (PEN), has been among the least volatile of all Latin American currencies in the past few years. Since the mid-1990’s, the PEN’s exchange rate with the USD has fluctuated between 1.25 and 3.55 per USD. The PEN closed at 3.28/USD on May 26. The PEN appreciated 2.41% against the USD since January 1, 2017 having appreciated 2.06% over the past 12 months.
In its Doing Business 2017 publication, the World Bank ranked Peru 54th among 190 countries surveyed in terms of ease of doing business. The report rates the ease of processes like starting a business, dealing with construction permits, registering property, and obtaining credit. For the complete report please see: Doing Business in Peru Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.
Peru Trade Development and Promotion