Macroeconomic Part of Peru

Macroeconomic trend analysis for Peru

Economic growth forecasting

As the world’s second largest producer of silver and third largest producer of copper, Peru has been growing by an average of 5.6% for the past five years in its economy. According to World Bank’s forecasting, Peru’s economy is expecting to accelerate, with a growth of GDP from 4% in 2014 to 6% in 2016, much higher than the average GDP growth of Latin America & Caribbean. For the last three years, this growth was due partly to high international prices for Peru's metals and minerals exports, which account for almost 60% of the country's total exports, and they will continue to boost Peru’s economy in the coming 3 years.

Forging Direct Investment

After having attained a record level in 2007-2008, the FDI flows into Peru fell in 2009, under the effect of the global recession. Nevertheless, they rebounded in 2010 and the following years, stimulated by the region's growth. Thanks to its attractive legislative and fiscal framework and a dynamic mining sector, Peru continued to attract FDI in 2013. It is now a leader amongst the South-American receptors of FDI, behind Chili but ahead of Argentina with FDI influx reaching USD 12 billion in 2012. The strong appetite of foreign investors continues, with a $70 billion investment expected over the next five years, including $42 billion in the mining sector alone.

Since the US-Peru Trade Promotion Agreement entered into force in February 2009, total trade between Peru and the United States has doubled. Although Peru has continued to attract foreign investment,

Government expense

Consumption

Import & Export

Exchange rate

Unemployment and labour force