Expat Companies are Taking Note of the Economic Growth of Peru
Peru’s economy is consistently growing faster since 2013. Business and international trade draw to investing in the country because of its growth. Those who chose to put up a company in Peru experience positive effects on their business. For you to know more about it, the different sectors where Peru excelled can discuss here, the challenges, and the excellent future. The economic growth of Peru has really given the country a lot of credit and a positive reputation.
Economic Growth of Peru is a Good Surprise
In 2016, the economy of Peru went through a growth that was stronger than they projected. It was 3.9% because copper production increased, manufacturing costs dropped. The agriculture, services and retail sales growth were also factors.
Since the economic growth was unexpected, the sol currency went up against dollar currency. Therefore, $95 million worth of local spot in the market was bought by the central bank. The numbers demonstrate a more confident market which can increase the success of companies because they have continuous growth.
There are other foreign investors that have been doing business in the country and direct investors from outside Peru have grown. Businesses are taking advantage of forming a company in Peru because of economic growth.
In January 2017, there was an increase of 4.5% to 5% in Peru’s economy because of public investment, more working days, and fishing.
Mining Sector Also Caused Economic Boom
This is another factor that contributed to Peru’s growth which is the economy’s driving sector. This is all because of the huge investments in projects and new mines from foreign companies and their government.
For instance, the hydrocarbon and mining sector added 1.94 points to 3.9% of last year’s expansion, which is more than 3 times than other industries in Peru.
Although, in January, constructor Odebrecht was involved in a major scandal and had a negative impact on the economic growth of Peru. The economic expansion was slow down by 3.8% rather than 4.8% which President Pablo Kuczynski expected because of it. Keeping a low rate of corruption is a problem Peru faces in order to have continuous economic growth.
2nd Largest Global Producer of Copper
The country compensated for the loss caused by the corruption incident with Brazil through a significant copper production boost. Peru beat China and kicked it out of the 2nd spot as the largest global producer of copper after Chile. It concluded a 38% increase in production which led to the record of producing 2.35 million tons. This was huge part because of MMG Lt’d Las Bambas mine and the Freeport McMoran Inc’s Cerro Verde deposit expansion.
Peru has clearly shown strength and power and its economy is still growing fast in the Latin American region. The country reaps benefits to those who are investing in the business and international trade. The economic growth of Peru will always open doors for those who are willing to put up a company in the country. Contact 3E Accounting for business assistance.