A look at the state of the Peruvian economy at 200.
In 2021, Peru celebrates 200 years of independence. Since then, the country has emerged as a regional economic force, having experienced annual growth rates above 5% from 2002 to 2013. From 2014 to 2019, growth slowed to around 3% per year, a result of low international commodities prices. Peru, however, was well equipped to manage what could otherwise have been described as a crisis, thanks to some nimble fiscal maneuvering. That was coupled with the coming online of new mining projects, which saw the current account deficit slashed to just 1.5% in 2019.
The last year, however, encompassing a large portion of 2020, has wreaked havoc across Latin America and led to a decline in GDP of over 17% in Peru in 1H2020. Peruvian households were affected particularly badly. As the world inches out of lockdown, Peru’s government is tasked with ensuring shared prosperity and an economy better capable of withstanding external shocks. This special report, launching in a bicentennial year, features interviews with top business and social leaders from across the economy, aiming to gauge their optimism at a time of unprecedented challenges. It also examines the impact of the current political cycle, as well as the niche sectors that could offer long-term benefits to the national economy, including medical cannabis, for which Latin America is emerging as a global frontrunner. Digitalization was also in the foreground of every discussion we held during the preparation of this report, thrust into the spotlight due to COVID-19.
Luis Torres Paz, Former Executive President at PROMPERÚ, told The Business Year that “COVID-19 has accelerated the digital transformation that was started a few years ago, which is why we could continue with international promotion activities, despite the global conjuncture,” thus summing up a message of resiliency that we heard from so many sections of the economy.
It is our hope that this 45-page special report form both an important snapshot of the Peruvian economy, as well as a looking glass to the near future, beyond COVID-19, when the country once again hopes to shine.
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