Two questions preoccupy any analysis of Peru’s
investment prospects. Is the country’s standout
growth story just getting going? Or is slowing Chinese demand
for minerals like copper – coupled with domestic
mining sector politics – about to bring the country
back to reality?
ANDEAN PERU: Limits of pragmatism
Peru remains an investment hotspot—for now. The government hopes to double copper mining by 2016. But the country remains vulnerable to slowing Chinese demand and domestic political conflicts. By Lucien Chauvin
Investment in mining in Peru reached another historic high
in 2013, coming in at $8.9 billion, up 15% over the previous
year, according to government figures. Meanwhile the country
posted its first trade deficit in a decade: $365 million, with
exports at $41.8 billion, a decline of 8.3% from the previous
year, while imports were $42.2 billion, up 2.6%, according to
the central bank.
The central bank expects a slight trade surplus, below $100
million, this year, growing to $1.7 billion in 2015.
Overall, Peru’s economy continues to expand at
rates above global levels and is forecast to be one of...
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