The Report: Peru 2015

Expanding at an average rate of 6.4% per annum since the mid-2000s, Peru’s economic growth has been remarkable, but also heavily dependent on one sector. Driven by a sharp rise in commodity prices, the mining industry spurred Peru’s economy to the fastest sustained growth rate in Latin America during much of the past decade.The end of the commodities supercycle however, saw economic growth slow down substantially over the course of 2014, with the central bank revising growth projections to 3.1% in mid-October. In a bid to stimulate growth, the government has intensified diversification efforts and introduced a series of measures aimed at promoting investment. The current economic slowdown, attributable in part to delays in some major mining developments, is generally seen as a temporary one, and growth is expected to pick up again in 2015. While mining will remain the backbone of the Peruvian economy - in particular from 2016 and beyond as several large-scale copper projects come on-line - other sectors, including industry and tourism, should begin to play increasingly important roles.