With a record of consistent profitability and credit growth, the banking sector has benefitted from economic expansion in the past decade. Strong regulations are credited with having ensured that banks made it through the 2008 global financial crisis relatively unscathed. In 2014, the proposed end of the commodities supercycle, an economic slowdown and the prospect of...
The centrality of microfinance to Peru’s economy extends beyond its contribution to banking profits, given its role in reducing poverty, accelerating formalisation of the workforce and bringing growth to regions previously beyond the reach of traditional banks. Even so, its development has not been consistently smooth. Some weaker players have been taken over or merged...
Despite numerous government initiatives conceived over the years to tackle workforce informality in Peru, it remains a major problem that shows few signs of swift resolution. Although the data vary depending on the definitions of “informality”, about 65% of businesses were considered informal as of April 2014. This compares unfavourably to some of Peru’s poorer...
Following the end of the commodities super-cycle that sustained Peru’s economic growth at an average rate of 6.4% per annum since the mid-2000s, the country saw growth fall sharply over the course of 2014. However, this slowdown is widely seen as a temporary lull, attributable in part to delays in some major mining developments, and the government has sought to...
Peru’s overall ranking of 65 out of 144 countries surveyed in the World Economic Forum’s (WEF’s) “Global Competitiveness Report 2014-15” belies some serious weaknesses, in institutional capacity and education in particular, that have prevented the country from climbing further up the table. Despite gaining recognition from the WEF for its “very strong macroeconomic...
In the first half of 2014, the government approved a range of measures designed to support economic activity. These fell broadly into two categories: short-term measures, intended to have a counter-cyclical effect to address the slowdown in 2014, and medium-term measures, expected to improve competitiveness and productivity, and thus raise the potential for growth....
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