Peru is experiencing strong economic growth and continues to open up the economy to foreign participation. Consequently, Peruvians are enjoying a higher quality of life while their national sectors prosper. What was once considered a relatively unstable country lacking commercial opportunities, has now made its mark on the world stage and has transformed into a great economic force, with no signs of slowing.
Peru Economy – Strong National Sectors in Peru
In the past decade, Peru has grown to be one of the most popular tourist destinations, not only in Latin America but across the globe. It boasts a rich cultural history, a great gastronomical scene, phenomenal landscapes, and of course, the infamous Machu Picchu. This increase in tourism is creating jobs, contributing to the economic growth of the country and ultimately improving the lives of Peruvian citizens.
The same can be said for the mining industry in Peru which continues to grow at an astounding rate. The world watches as this industry prospers, with international investment continuing to pour in. Peru is the 2nd largest copper producing nation in the world, with mines rich in natural resources, scattered across the country. In fact, Peru is expected to produce over 3 million tonnes of copper alone in 2021 (not to mention the gold, silver, iron, lead, zinc, bismuth, phosphates etc.). More importantly, international mining companies are now placing a strong emphasis on sustainable mining and are working closely with the local communities to ensure a fair deal for all.
Tourism and mining aren’t the only national areas that are seeing steady growth and playing a role in the country’s economic development. International trade in Peru has exploded in recent times and is providing a vast array of business opportunities for both local Peruvians and also foreigners looking to get involved in an attractive market. In addition to accessibility to the Pacific Ocean and its proximity to the Panama canal (allowing for trade to both European and Asian markets), Peru has mirrored Mexico as a leader in Free Trade Agreements, with over 90% of its trade covered by international agreements. This has been a great contributor to the recent growth in Peru.
While business opportunities in Peru are indeed more viable than ever, many individuals and companies overlook accounting, taxation and legal complexities involved with operating in the country. It is important to be prepared for these challenges before doing business in the country.
Peruvian Exports Across the Pacific
Peru has been increasing both exports and imports dramatically. Between November 2016 and November 2017, the total volume of goods exported by Peru increased by 12.7%, with goods imported rising 10.5%. These increases were in both traditional and non-traditional sectors.
In the last two years, Peru has formed a strong economic relationship with the Asian markets and, in particular, India. Despite being on opposite sides of the world, the nations have seen significant growth in two-way trade. When comparing the 10-month period between January and October of 2016 with the same period in 2017, Peru’s sales to India increased by 126%. The products exported ranged from natural minerals to agricultural products. With a Peru-India free trade agreement underway, we can expect an exciting commercial future between the nations.
As we kick off the new year, both individuals and companies are looking towards Peru as a country with ample opportunities in the international trade sector. Especially in non-traditional markets on the other side of the world across the Pacific Ocean. Another country in particular that has the capacity to form profitable Peruvian partnerships, is Australia. The recent Australia-Peru Free Trade Agreement has unlocked a wealth of opportunities for both nations. A new market for Australian wine producers and the cattle/kangaroo industry has been unlocked, with many Australians already taking advantage of the FTA.
With a professional and reliable Latin American Partner, the business opportunities in Peru are ripe for the picking. Get in contact with Biz Latin Hub- Peru to see how we can help you take advantage of these business opportunities. Send an email to Craig at [email protected] and discover how our commercial representation and back-office services can help you to successfully do business in Peru or any other region in Latin America.
Watch this powerpoint presentation to learn how to form a Peruvian company: