Peru is fastest growing economy in Latin America

Peru economy

Peru economyPeru is the fastest growing economy in Latin America, despite that most of it neighbors are suffering from crisis, recessions and sharply increasing debts. The New President of Peru was elected in June with rating of 55% and the economy of the country is having a real boom during the last years. The reasons for this is the good diversification of the country’s exports, positive growth of the commodities trends and political stability.

The good news for the country came after election of Donald Trump for the President of the US. His promises related to the roads in the country, sharply increased the copper price, which rose by 14% since the beginning of November. Peru is one of the world’s largest exporters of copper. However, the country’s export is well diversified and based on other commodities, such as gold and oil, which prices also rose during the year.

Peru is also attractive point of Chinese investments, as the country attracted 18 billion USD during the last decade. The amount exceeds the direct foreign investments received in the neighboring Colombia, Chile and Ecuador.

The economic growth of Peru is sharply contrasting the Latin American countries. Venezuela suffers from deep depression and humanitarian crisis, while Brazil is in the middle of the largest recession in several decades. Mexico is facing the introduction of high tariffs for export to the US. Argentina is alas in recessions, while Colombia and Chile and having slight growth.

On this background Peru is safe and GDP is steadily growing. In 2015 the GDP grew by 3.3%, while in 2016 the growth will exceed 3.7%.

However, Peru has its own problems, such as poverty and uncertainty of commodities prices, which might hurt the economy of the country in any time.

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