Peru is a South American country with an estimated population of over 32 million. Its economic expansion, modernization and improved political stability has resulted in a considerable increase in the amount of foreign investment. The country currently has a vibrant and booming economy, promising unprecedented gains for foreign investors.
This article will provid some brief information which highlights the business opportunities available in Peru for both locals and foreigners.
A Robust GDP growth
Peru is among the fastest-growing economies in the world, with a sustained GDP growth of above 5% over the last five years. It is also the 39th largest economy in terms of nominal GDP. This tremendous surge in GDP growth has helped reduce poverty levels; which have decreased from 30% in 2008 to nearly 22% in 2014, according to the World Bank Report.
A Dynamic Mining Industry
Like many Latin American countries, Peru is also rich in natural resources. For this reason, the exportation of natural resources is one of the countries main sources of income, contributing to nearly 35% of the country’s total GDP in 2014. In addition, Peru is the 4th largest lead, 3rd largest copper, 5th largest gold and 3rd largest zinc producing country in the world.
A Booming Service Sector
The Peruvian economy offers a booming service sector which accounted for nearly 60% of the total GDP in 2015. The sector consists of tourism, financial services and telecommunication, all of which have boomed due to a combined effort from both the government and private sector.
Free Market Economy
Peru’s free-market economy helps it maintain its competitive edge. Sectors such as mining, electricity and telecommunication have been privatized and informal sectors have been legitimized. Restrictions have been lifted in an effort to attract both domestic and foreign investment. As an added bonus, tax incidence is quite low and is charged only when the government needs it, making Peru all the more attractive for foreign investors.
Peru Business Services, as member of the Biz Latin Hub group will be glad to help you in the formation and growth process of your company in Peru. We are able to assist you with your initial market entry as well as the provision of legal, accounting, financial, and visa services. Feel free to get in contact with Craig at [email protected].