Economy

Over the course of the past decade Peru has recorded impressive economic growth, posting rates in excess of 6% from 2010-12. Though the pace of growth is estimated to slow to between 5.2% and 5.4% in 2013, mainly due to external shocks, observers are cautiously optimistic about Peru’s prospects for continued economic development. While the mining and hydrocarbons sectors continue to account for the bulk of exports as well as foreign direct investment, the recent growth of non-primary sectors, in particular construction, retail and services, point to increasing economic diversification. This is largely driven by greater domestic demand, expected to grow at 6.5% and 5.8% in 2013 and 2014, respectively. With a stable macroeconomic environment, prudent fiscal management and a number of new free trade agreements, Peru is well positioned for continued expansion. This chapter contains interviews with Karl de Gucht, EU Trade Commissioner; Luis Miguel Castilla Rubio, Minister of Economy and Finance; Javier Illescas, Executive Director, ProInversion; and Reubens Amaral Junior, CEO, Banco Latinoamericano de Exportaciones.