Peru: A Land of Opportunity

Aired April 2010

There is a country you have to see to believe.
Where the massive Andes Mountains crash into the impenetrable rain forests of the Amazon.
A land wrapped in 10,000 years of history.
Diverse. Exquisite. Fascinating. This is Perú.

South America’s most beautiful country is also a region of great potential and excellent conditions for business.
A developing air of competitiveness is rising as Perú enters the global marketplace, boosted by some of the most ambitious people in the continent.

How can a country scarred by civil war and political protest have a solid macroeconomic equilibrium?
And how can the Free Trade Agreement with the United States take Perú’s relationship with the world’s largest economy further?
A land of opportunity. This is Perú.

Perú is a nation on the threshold of change. Coming forth from decades of corrupt governments, instability, and protest, the Andean country is now seen by the world as an economic power in Latin America. In 2008, Perú’s GDP increased by 9.8% despite the international crisis. The positive economic expectations for Perú in the coming years are based mainly on the public and private investments, and to the increased confidence of foreign and domestic businesses.

With a total area of almost 500,000 square miles, Perú is the third largest country in South America. It is divided into three distinctive geographic regions: the Coast, the Andes highlands, and the rainforest. The capital city is Lima.

Former President Alan Garcia, who went into exile after a disastrous term, was elected president for the second time in 2006. While his popularity has dropped significantly over the last few years, Garcia has had some significant successes, mostly coming in the form of a rapid rise in foreign investments in mineral exploitation along big jumps in the price of primary resources. Despite half of its population living below the poverty line, Perú’s economic growth surpasses the global average.

The United States is one of Perú’s largest trading partners. In addition to a robust macro-economic environment, the trade relationship between the United States and Perú is also boosted by improved market access conditions. On February 1, 2009, the U.S.-Perú Trade Promotion Agreement entered into force, enhancing the overall commercial and investment climate by eliminating tariffs on many goods, accelerating the customs clearance process for U.S. imports, and strengthening protection on intellectual property rights.

Perú’s efforts to broaden its trade relationships are not limited to enhancing its commercial ties with the United States. The Peruvian Government is also in the process of negotiating trade agreements with Canada, China, the European Union, Singapore and Australia. This confidence has been aided by a strong public-private sector partnership.

CAPITAL MARKETS AND HUMAN CAPITAL

Lima. Perú’s boisterous, aggressive capital. This is a place where money rules, with an alluring underlying energy. With its splendid architectural attractions, Lima Centro is very much a centre of Limeños’ daily life. This is where almost a third of the country’s population live.

Perú’s capital markets are at an emergent stage. While banks are still the main financing source for the corporate sector, the capital market is showing good prospects in the context of favorable economic development and growing exports. The Lima Stock Exchange has been ranked some of the best performing in Latin America. Perú has financial and investment service companies that are innovative and at the same time prudent in managing risks to generate strategic allies. Such companies can offer a variety of products to cover financial requests from small and medium enterprise sectors, and can trade in the country not just through financial vehicles, but also in private projects.

The entrepreneurial mentality of Peruvians has developed at a fast pace, and this is evident in the country’s growing middle class.

The rise of both small and medium sized enterprises and strong multinational corporations have led to a boom in employment especially in white-collar office jobs in the main cities. Peruvians are now becoming more and more in-demand, something its residents are very much proud of.

INDUSTRY

Lima is at the heart of a massive explosion in manufacturing and industry. While mining is still the most profitable industry for the country, heavy industry has become a key factor in the nation’s economic growth, no doubt hastened by its strong free trade agreements. These days, the phrase “Made in Perú” has become synonymous with quality and craftsmanship.

Unlike some of its Andean neighbors, Peruvian companies are investing a lot into raising the quality standards of its manufacturing infrastructure to cope with the demands of the national and international markets.

Even more impressive are the number of Peruvian companies who are actually making a name globally. The Peruvian multinational has become a reality, expanding both offices and production lines as far away as North America and Europe.

INFRASTRUCTURE, TRANSPORT AND ENERGY

The region of Arequipa. Perú’s second-largest city, Arequipa grew from a collection of Spanish colonial churches and homes constructed from petrified volcanic ash from the surrounding terrain. The landscape is dominated by the Andes Mountains rising high into the sky, with fertile valleys that plunge into deep canyons.

Perú’s geography provides investors a unique opportunities in energy generation projects, and hydropower in particular. The Peruvian government is encouraging foreign companies to harness the potential of the region.

The exponential growth of Perú’s economy and in particular its lively international trade is creating significant demand for infrastructure and logistic services. Its geo-strategic location provides prime access to all American markets, enhanced by a strong land, air, and sea network.

Private companies are also adopting more and more corporate social responsibility projects, especially in areas where infrastructure development is minimal and people do not have easy access to goods and services. The public and the private sectors are working hand in hand to make sure that businesses are both profitable and responsible, and the response has been successful.

TOURISM

The Sacred Valley of the Incas. The Center of the World. This is South America’s biggest tourist magnet offering a thriving Andean culture, awe-inspiring Inca architecture and treasures from the Spanish colonial era. Perú at its most magical.

But there is more to Perú than Machu Picchu. Perú holds an infinite amount of destinations, waiting to welcome American visitors with open arms.

The potential of Perú as a tourist product is one of the largest in the world. However, it currently has to meet the challenges of a changing and increasingly competitive travel market.

The mighty Amazon. In Perú you can cruise down rivers and lose yourself at the biodiversity of the surrounding jungles. Perú’s least-known region receives only a tiny fraction compared to visitors that go to Machu Picchu, but it is just as unforgettable. Few people think of Perú in terms of jungle, yet well over half of the country is covered by dense tropical rainforest. As a global center for biodiversity, the Peruvian jungle is a conservation priority. It is disappearing at an alarming rate due to deforestation and the onslaught of modernity, threatening the environment and the lives of the over fifty indigenous tribes that still live scattered throughout the Amazon. Through responsible, regulated tourism, visitors can experience the region is all its glory without leaving a harmful footprint.

Peruvians are proud of their country, and rightfully so. It is a feast of sight sound, and color. Its hotels are world-class, and its gastronomy is second to none. Peruvian cuisine is considered one of the most diverse in the world and Lima is the unofficial "Gastronomic Capital of the Americas". And who can forget the Peruvians, the most entertaining and friendliest people in South America. Truly the best recipe for the perfect holiday.