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Peru capitalizes on the wealth of blue gold

10 min reading time

Published on 28/12/12 - Updated on 17/03/22

Since its return to democratic circles in 2001, Peru has experience almost exponential GDP growth. This growth is not exempt from bumps and political scandals, but the trend is steady enough to attract foreign investors and increase the level of domestic consumption. Along with its neighbours Brazil, Chile and Colombia, Peru is amongst South America’s best performers. Tourism here is considered a key sector, the country seeing frequency rates of which the Minister of Tourism and Commerce can be proud of. Almost two billion hotel investments have been committed, with international brands reinforcing their presence.

Chiffres clés

-* Population : 29.5 million -* Area : 1,285,000 sq. km -* GNP 2011: $140 billion -* GNP per capita: $4,705 -* Official language : Spanish, Quetchua -* Nb of classified hotels : 1,985 -* Nb classified rooms : 49,890A favourable economic environnment Over the last decade 2000-2009, Peru’s GDP growth rate averaged at 5.3%. And even during the dark year that was 2009, the country experience 0.9% growth, making it one of the few on the continent not to fall into recession. Since then market has gotten back on its feet, with growth rates of 7% in 2010 and 2011 and a forecast of 5% yearly growth on average until 2015. As a result the country is catching the eye of investors whose interests lie in the economy’s two largest sectors: mining and tourism, and to a lesser extent textiles and agriculture. Recent economic development has been supported by an active policy of public investment in infrastructure and privatisation of large state businesses. The combination of these two policies has enabled the country to reduce its public debt and get in the credit rating agencies’ good books. Peru, with 30 million inhabitants, the Andes Cordillera running through it, and status as the former heart of the Inca Kingdom which largely extended to neighbouring countries, is known for the richness of its subsoil which is far from fully exploited. Its growth potential is considerable, given the general rise in commodity prices.But Peru is not entirely protected from major difficulties. With the arrival of new President Ollanta Humala, Alan Garcia’s successor, the country is trying to draw a line under a past heavily marked by corruption and inequality. The middle classes are getting richer in a few of the country’s large cities such as Lima, Arequipa, Trujillo and...

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