Peru exports have surpassed those registered prior to the ongoing COVID-19 pandemic, in what represents an encouraging sign of the country’s coming recovery from the economic ructions caused by the global health emergency.
The news will be welcomed by businesses and international investors already operating in the market, or those interested in market entry via company formation in Peru, as it indicates the progress being made in overcoming the pandemic and the prospects for a rapid recovery.
According to Peru’s Ministry of Foreign Trade and Tourism (Mincetur), Peru exports for several key economic sectors during the first quarter of 2021 exceeded those of the same period for both 2020 (as the pandemic set in) and 2019 (pre-pandemic).
Those include exports of agricultural goods, chemicals, and textiles — the latter of which was particularly badly affected by the pandemic, with exports of textiles and garments falling from $286 million to $100 million between the first and second quarters of 2020 (all figures in USD). However, they bounced back to hit $352 million in the first quarter of 2021.
According to Foreign Trade and Tourism Minister Claudia Cornejo, the results demonstrate how Peru has continued to operate effectively despite the issues caused by the pandemic, with ramped up digitization in the import/export sector and new commercial agreements with international partners helping the country register such positive results. However, Cornejo was keen to highlight the role that exporters at home and abroad had also played.
“This recovery would not be possible without the efforts of exporters and the entire foreign trade chain,” she was reported to have said by news agency Andina.
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Improved Peru exports point to wider recovery
Peru’s exports were severely affected by the global crisis, with first-quarter exports in 2020 falling almost 10% (from $10.94 billion to $9.89 billion), before tumbling to $6.68 billion in the second quarter, representing a total decline of almost 40%.
However, after being one of the nations hardest hit by the pandemic in Latin America during 2020, Peru has shown consistently encouraging signs of recovery in 2021, reporting some of the best economic results in January among the region’s major economies.
In March it was reported by Scotiabank that all of the Pacific Alliance countries of Chile, Colombia, Mexico, and Peru had seen most major economic sectors return to pre-pandemic levels of monthly economic activity. That same month, the Peruvian mining sector was reported to be “on course to be one of the fastest recovering industries in the world in 2021.”
Meanwhile, following the positive news regarding Peru exports, this week it was reported that the country had overcome two months of contraction in economic activity at the beginning of the year to post growth of more than 18% in March.
Opportunities for doing business in Peru
While the strong showing for Peru exports points to the opportunities available in the international trade sector, Peru boasts a range of other good opportunities for doing business, including:
Agriculture: Peru has a large agricultural sector with many opportunities. Major export crops include the likes of asparagus, avocados, cacao, coffee, blueberries, grapes, and soy. In 2020, the country exported more than $7.55 billion of agricultural goods — a historic high.
Mining: Mining has long been a key contributor to Peru’s economy and as highlighted above is a sector making a quick recovery from the pandemic. The country has major deposits of copper, gold, and iron ore, as well as good opportunities in mining lead, silver, tin, and zinc.
IT and tech: Peru’s IT sector has been developing rapidly in recent years, with some tech companies growing during the pandemic. That pattern can be expected to continue as the “new normal” of the post-pandemic era sees people continue to work from home and rely on the Internet far more than before the crisis.
Tourism: While tourism may not seem the most logical opportunity while a pandemic is ongoing, the reality is that the sector is going to bounce back rapidly once normality and regular international travel are restored. Investors involved in the sector’s recovery will also be able to count on considerable government support, after a National Tourism Reactivation Plan was announced by Cornejo in February.
Biz Latin Hub can assist you in doing business in Peru
At Biz Latin Hub, our multilingual team of company formation experts is equipped to help you enter the Peruvian market to take advantage of the major trade opportunities highlighted by the increase in Peru exports. With our complete portfolio of back-office services, including, legal, accounting, tax advisory, and recruitment, we can be your single point of contact for entering and operating in Peru, or any of the other 16 countries around Latin America and the Caribbean where we are present.
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