March 1, 2014
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?
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 t
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