Additionally, economic projections for Peru for the coming years continue being favorable, and are mainly based on announcement of investment projects and on the high expectations of domestic consumption. This is accompanied with the economic agents’ confidence generated by the implementation of responsible economic policies, which have been constant through the recent series of governments.

Economic Growth Rate Projections – Latin America: 2012-2014 (Annual Average Variation%)

Source: Ministry of Economy and Finances (MEF) and IMF

High Activity in Investments and Foreign Trade

Private investments increased by 11.7% during 2011, reaching a value close to US$ 35 million. The investment flows into Peru are expected to continue their expanding trend as a result of the investors’ confidence in the economic performance of the country.

Foreign capital flows continued their expansion, registering a total net foreign investments of US$ 7.548 million (21% of the total private investment value). This investment has been concentrated on mining, finances, communications, industry and energy, which reflects the growing strength of the country’s domestic market.

Foreign Trade

Export value increased by 30% during 2011, reaching the record value of US$ 46.268 million, six times more compared to the level registered one decade earlier (an annual average rate of growth of 21%). Meanwhile, registered import amounted to US$ 36.9678 million, giving Peru a positive trade balance for the tenth consecutive year).

Peruvian exports comprise a 60% of mining products, which are diversified and include copper, gold, molybdenum, silver and zinc, among others. Mining exports during 2011 amounted to US$ 27.848 million, 27% more than the last year figures.

Exports by Sector (In million of US$)

Source: Central Reserve Bank of Peru (BCRP) Prepared by: ProInversion

Other production sectors with significant participation in the total exports are Agriculture and Fishery. In fishery, the export indicator is largely due to the shipping of fish oil and meal, products for which Peru holds the top place in the exporting countries ranking. Agricultural exports, on the other hand, stand out for their diversification both in level of products and in their destinations.

Peruvian Exports to Foreign Countries - 2011 (In million of US$)

Source: PromPerú

Economic Strength

The level of international reserves amounts to US$ 48.8 billion, equivalent to more than one year of imports and 2.4 times the foreign public debt stock. This is one of the highest liquidity levels both of the region and worldwide, and represents a support for the international obligations that Peru would need to fulfill in the event of possible contingent scenarios including a damaged foreign environment and international financing restrictions.

Other factor worth mentioning is the constant reduction of the foreign public debt, now amounting only to about 20% of the GDP.

Public Debt (% of the GDP)
Source: Central Reserve Bank of Peru (BCRP) Prepared by: ProInversion * Estimated figures