Peru’s success story is based on the continuity of sound economic
• Peru`s GDP (equivalent to USD$ 218 billion in 2015 has increased at an
average rate of over 6 percent each year and is now three times our 1995
• Public debt is decreasing (19.3% of GDP);
• International net reserves represent 32% of our GDP;
• Unemployment is around 6%;
• Inflation (3.2% in 2015) & country risk are also amongst the lowest in the
LA5: Economic Growth 2002-2014
Latin America: Sovereigns Rating1
(Long Term Debt in Foreign Currency)
Source: IMF WEO April 2015, MEF
A leading economy with three basic guidelines:
Peru´s potential & advantages allow our country to be optimistic…
a) … 32 million people a “melting pot” full of creativity and
b) … 15% of his mining potential exploited.
c) … 25 million out of a total of 106 million of hectares of available forests.
d) … 3.3 GW of its 70 GW hydroelectric power.
e) … mega-biodiversity almost completely exploited.
f) … developing other value added industries & services opportunities
g) … strategic location of our territory as a “hub” in South America.
h) … strong macroeconomic fundamentals are strong
i) … a huge gap in infrastructure of around USD$ 121 billion which offers
incomparable and attractive opportunities for foreign investment.
Peru: main challenges on the economic side…
Economic growth + a socially inclusive approach have underpinned increases in
adequate employment, lower poverty levels and expanded middle class…
Extreme poverty reduction has fallen to 4.3% almost
one sixth of what it was in 1991;
Chronic infant malnutrition has descended to 10.7%;
Alphabetization of young population is almost 100%;
Equal primary education attendance levels between
boys and girls has been reached;
Reduction of infant mortality is 17%; and,
Income inequality has also been tackled as Peru´s
Gini index (0.44) is below MEX/COL/CHI/BRA levels.
Peru´s modern and efficient social inclusión programs…
… pre-natal medical care.
programs and labor
children 1-3 years old.
… food program for
most vulnerable sector
of young students in
above 65 years old
or extreme poverty.
specifically oriented to
sectors in exchange of
the fulfillment of
… finance university
education to less
Peruvian integration in the international scenario…
FAIR & EQUAL
FREE TRANSFER OF
Peru´s aspiration to be part of the OECD by 2021 is a strategic
national objetive to escape the middle income trap…
Education & skills
Governance & trust
identified by OECD
coincide with the
political, economic &
social challenges 11
Peru: Global Integration via a wide net of Regional Trade
Agreements (Free Trade Agreements)
Peru & the European Union: FTA put Peru on the radar but still
with a lot of potential to be exploited…
The Trade Agreement with the European
Union (2013) became a “turning point”
of our bilateral relations with the EU and
its Member States.
Economic and trade assets but mostly a
positive political impact.
Clear signs of our common will to continue moving forward
towards a “Strategic Partnership”:
Increased political cooperation (Security issues & peace
keeping operations led by EU);
Triangular cooperation & technical assistance in favor
of institutional reforms;
Fight against drugs and international organized crime;
ST&I, climate change, education and migration; and,
EU Member States´ support to Visa Exemption
(Schengen) to Peruvians & support to Peruvian
aspiration to the OECD in 2021.
European countries are a key partner for pour non traditional
Trade balance Peru-European Union (UE-28), 20102014 & January-March 2015 (In US$ Millons)
Evolution of non traditional Peruvian exports to the
EU 2007-2014 (In US$ Millons)
2007 (In millons OF
2014 (In millons OF
Peru & the Pacific Alliance: A strategic perspective
• Additionally, by 2012, they were
able to obtain US$70 billion in
Direct Foreign Investment (DFI).
• All members have eliminated visas
• PA represent 34% of Latin America's
GDP and 2.7% of the global GDP.
• It is the ninth largest economy in
• Trade represents 35.8% of Latin
America and the Caribbean.
American Stock Market known as
MILA the largest market in Latin
America and the second largest.
• They have agreed to liberalize at
least 90% common custom duty
tariffs upon the Agreement coming
Latin American integration & worlwide
Peru actively participates in different integration processes at the political level
within the framework of the Community of Latin American and Caribbean
States (CELAC) and the Union of South American Nations (UNASUR).
The Andean Community is our natural sub regional group (focus of attention
has turned to sectorial policies regarding health, education, labor, and
infrastructure and border development)
Peru´s relations with the Southern Cone Common Market (MERCOSUR) provide
a space for dialogue and exchange of good practices.
Pacific Rim (APEC, ASEAN).
Arab Nations (ASPA).
African South America Forum Summit (ASA).
What Peru has to offer?
A reliable political partner in the region to promote business in
democracy, and respect for the law and other shared values and
respect for the environment.
What does Peru need?
More investment. More trade: (diversified exports).