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WHY INVEST IN PERU? MACROECONOMİC SOUNDNESS. Fast and steady growth of the Peruvian economy in the last decade Real GDP, 2004-2016* (%Variation) Source:

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Presentation on theme: "WHY INVEST IN PERU? MACROECONOMİC SOUNDNESS. Fast and steady growth of the Peruvian economy in the last decade Real GDP, 2004-2016* (%Variation) Source:"— Presentation transcript:

1 WHY INVEST IN PERU? MACROECONOMİC SOUNDNESS

2 Fast and steady growth of the Peruvian economy in the last decade Real GDP, 2004-2016* (%Variation) Source: Central Reserve Bank of Peru Estimated figures of BCRP (Inflation report as of November 2015) 1.MACROECONOMIC SOUNDNESS GDP, 2004-2016* (US$ Billion)

3 ESTABILIDAD MACROECONÓMICA 1.MACROECONOMIC STABILITY Economic growth has been driven by an increase in private investment… Private Investment 2004-2016* (Variation %) Private Investment 2004-2016* (US$ Billion) 1.MACROECONOMIC SOUNDNESS Source: BCRP * BCRP Estimated figures (Inflation report September 2015)

4 ESTABILIDAD MACROECONÓMICA 1.MACROECONOMIC STABILITY … which today represents almost 20% of GDP … Private Investment 2004-2016* (% of GDP) 1.MACROECONOMIC SOUNDNESS Total investment – LATAM 2014 (% of GDP) Source: International Monetary Fund and figures of Central Reserve Bank Source: Central Reserve Bank of Peru * Estimated figures of BCRP (Inflation report as of September 2015) Public Investment Private Investment Peru Colombia Chile Mexico Brazil

5 Also by the increase of the domestic demand 1.MACROECONOMIC SOUNDNESS Real domestic demand 2004–2016* (real annual Var. % ) Imports of vehicles for private use (US$ million) 8 Times Imports of domestic assets / 1 (US$ million) 4 Times Source: SUNAT and MEF Estimated figures 1/ Includes imports of refrigerators, television, washing machine and electrical appliance. Source: Central Reserve Bank of Peru and MEF Estimated figures BCRP (Inflation report, September 2015)

6 ESTABILIDAD MACROECONÓMICA 1.MACROECONOMIC STABILITY This is complemented by a dynamic commercial trade… Balance of Trade 2004-2016* (US$ million) 1.MACROECONOMIC SOUNDNESS Source: BCRP * Estimated figures BCRP ( Inflation report, September 2015) Exports Imports Trade Balance

7 ESTABILIDAD MACROECONÓMICA 1.MACROECONOMIC STABILITY … with diversification, both in products and markets 1. MACROECONOMICSOUNDNESS 1. MACROECONOMIC SOUNDNESS Source: Central Bank of Reserve of Peru Traditional Exports( commodities ) (US$ million) 6 veces Non-Traditional Exports (US$ million) Main trading partners 2004 2014 3 times

8 ... all this, in a frame of macroeconomic stability, Peru records the lowest inflation rate at a regional level…. 1. MACROECONOMICSOUNDNESS 1. MACROECONOMIC SOUNDNESS Source: Central Bank of Reserve of Peru,IMF CPI – Latin America 2003- 2013 (Annual Average Variation %) CPI – Latin America 2014 (Annual Average Variation %) Brazil

9 … has maintained stable exchange rates and a level of risk under the regional average Exchange Rate in Latin America 2004-2014 (Index, Base year 2005 = 100) JP Morgan EMBI+ (Basic points) 1. MACROECONOMICSOUNDNESS 1. MACROECONOMIC SOUNDNESS Source: CEPAL Peru Mexico Spread Peru (pbs) Spread LATAM (pbs) Source: BCRP

10 Peru maintains a healthy level of debt… Public Debt– Peru 2004-2016* (% of GDP) 1.MACROECONOMIC SOUNDNESS Public Debt– Latin America 2014 (% of GDP) Source: IMF and BCRP Source: Central Bank of Reserve of Peru *Estimated figures, BCRP (Inflation report September 2015) Chile Peru Colombia Venezuela Mexico Argentina Brazil

11 … and has accumulated international reserves for a third of the GDP Net International Reserves ( US$ Billion) 1.MACROECONOMIC SOUNDNESS Source: Central Reserve Bank of Peru *Up to October 22, 2015 NIR Adequacy Indicators Source: BCRP. Inflation report September 2015 *Projection 200520102015* NIR (% del GDP)19.029.731.8 NIR (% short -term foreign debt)292.7506.9641.9 RIN (% Short-term Foreign Debt plus Current Account deficit ) 385.5360.2392.2

12 Source: Standard & Poor`s, Fitch Ratings and Moody´s. Updated as of September 2015 1.MACROECONOMICSOUNDNESS 1.MACROECONOMIC SOUNDNESS Peru earned the investment grade and investor´s confidence by practicing a responsible political economy Investment grade Latin America benchmarking CountryS&PFitchMoody´s Chile AA-A+Aa3 Peru BBB+ A3 Mexico BBB+ A3 Brazil BBB-BBBBaa2 Colombia BBB Baa2 Bolivia BB Ba3 Ecuador B+BB3 Venezuela CCC Caa3 Argentina SDRDCaa1 Best countries for doing business Latin America comparison Source: Forbes (December 2014) Countries with the best investment climate South America comparison Source: Getulio Vargas Foundation (January 2014) Positión LAC Positión Mundo Country 129Chile 252Peru 3 55Uruguay 457Costa Rica 561Mexico 666Panama 767Colombia Peru Paraguay Bolivia Uruguay Colombia Chile Mexico

13 www.proinversion.gob.pe falbareda@mincetur.gob.pe

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