Economic report: Peru will lead growth in the region
LatinFocus consulting group predict Peru will lead growth in the region until at least 2018, with GDP growth forecast at 5.4% - 6% for 2014.
Peru’s impressive economic indicators continue to make it an attractive destination for doing business in Latin America. Growth slowed to a still enviable 5% in 2013 but is set to re-accelerate this year. LatinFocus group forecast 5.4% growth for 2014 and predicted Peru would lead growth in the region until at least 2018. The IMF and other forecasters predict growth of 5.5% - 6% for 2014. Peru overtook Colombia in GDP per capita in 2013 and is set to surpass Brazil in 2016.
According to LatinFocus, despite the recent turbulence affecting emerging markets Peru´s economy has remained solid thanks to a low inflation rate, robust growth and a low external debt level. The Heritage Foundation and The Wall Street Journal awarded Peru a score of 67.4 in the economic liberty ranking, easily surpassing the regional average (59.7). The total investment rate reached a record 27.3% of GDP in 2013, surpassing all others in the region.
Public investment has been one of the main focuses of government action in February, with an increase of 27% compared to the same period last year. Infrastructure is the key sector, though further delays to the flagship USD 5.8million investment in Line 2 of the Lima metro system have put the award date back to the end of March.
As the original proponent and founding member (along with Chile, Colombia and Mexico) of the Pacific Alliance (PA) free-trading bloc, Peru celebrated the signing of an agreement to eliminate tariffs on 92% of traded products and to gradually eliminate tariffs on all other goods within 17 years. Together the four PA countries constitute the 8th largest economy and the 7th biggest exporter in the world, and 36% of the region’s GDP.