The mining sector can be described as one of the main engines of the Peruvian economy as it accounts for 12% of total GDP. It creates direct employment for 174,000 workers and indirectly accounts for another 1.5m jobs. In 2016 mining exports totalled $23.8bn – consisting of 65% of the country’s total merchandise exports. The medium-term outlook is certainly positive, with a range of new mines...
Peru Energy
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Over the last two decades Peru has been one of the fastest-growing economies in the region. Remarkably resilient to global headwinds, positive GDP growth has continued despite the end of the commodities boom. Yet the growth rate has slowed and the initial impetus of a first wave of structural reforms has faded. The question now is whether the current administration can address problems, implement further reforms and re-accelerate the economy.
By harnessing its hydro and gas resources, Peru has developed a robust and diversified energy mix. Cheap and plentiful power is one of the key comparative advantages for the country’s mining and industrial sectors. However, falling commodity prices coupled with anti-mining protests have led to the delay of major copper and gold projects in 2016. As a result, demand for energy has not reached...
By any measure, Peru is a giant of the global mining industry. Only Chile and China produce more copper and the country is the world’s seventh-largest producer of gold and the third largest of silver. It is unsurprising that Peru’s economic fortunes have been tied to the mineralogy of the Andes Mountains for many centuries. The mining industry has been the driver behind the growth of the...
After a difficult 2015, marked by lower commodity prices and reduced export revenues, Peru is on track to begin economic recovery in 2016, with increased mineral output set to drive much of its rebound. The IMF forecasts growth to rise to 3.3% in 2016, up from an estimated 2.5% in 2015.
The growth of the mining sector, driven by a sharp rise in commodity prices, spurred Peru’s economy to the fastest sustained growth rate in Latin America during much of the past decade. The recent fall in commodity prices, however, has led to a significant drop in the value of Peru’s mining exports, and consequently, a slowing of GDP growth in 2014. The central bank lowered its outlook on...