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Peru’s economic growth of the past decade has spurred significant changes to the country’s telecommunications and IT sectors. In addition to four full-fledged telecommunications operators fighting for market share, the sector anticipates the entrance of mobile virtual network operators in the near future. Meanwhile private investment is being deployed into 4G-network infrastructure across the country in response to the rising use of mobile data. Government plans to improve the reach of broadband through a new fibre-optic network are also helping to bring telecommunications services to more remote areas. Increased competition has brought about a new level of dynamism to the market, encouraging investment by operators and putting downward pressure on profits. A dynamic telecommunications sector is encouraging the expansion of smartphone technology, which has allowed small and medium-sized enterprises to access software and increase IT usage to sustain expansion at affordable costs. This chapter contains an interview with Gonzalo Ruiz, President, OSIPTEL.

In recent years, Peru has established itself as one of the world’s most unique tourism destinations, with much of the sector’s growth resting on the Incan ruins of Machu Picchu. According to the Ministry of Foreign Trade and Tourism, international arrivals increased from a total of 993,706 in the period between January and September 2004 to 2.6m during the same nine-month period in 2015. Sector revenues have also seen a gradual increase, reaching $3.8bn in 2014. The government expects to attract up to 5.1m visitors annually by 2021 and generate income of close to $7bn. To accelerate expansion over the coming years, tourism authorities and the private sector are simultaneously increasing promotional efforts and developing the country’s touristic products. Meanwhile, an inflow of private capital into the growing hospitality sector and infrastructure development is opening up other regions of the country to domestic and international visitors. This chapter contains an interview with Magali Silva Velarde-Álvarez, Minister of Foreign Trade and Tourism.

The Peruvian agriculture sector grew 1.5% in 2013 and 1.6% in 2014, according to the central bank, well below overall GDP growth of 5.8% and 2.4%, respectively. In the first six months of 2015 the sector contributed nearly 6% to GDP, and the fishing industry another 0.5%. Yet, while exports have risen strongly, sector growth in the first quarter of 2015 was just 0.5%, although this picked up to 2.9% year-on-year in the second quarter. Exports of agricultural and fish products have grown at 10-15% per annum from a base of $925m in 2000. In 2014 sector exports surpassed $5bn, a 19% increase on the figure from the previous year. This chapter contains an interview with Mario Mustafá, President, Ecosac.

Several years of rapid economic growth have laid bare persisting gaps, underscoring the need to reduce logistics costs and revamp the country’s infrastructure. Improving transportation networks has become one of Peru’s top priorities. Although the slowdown in China is sure to impact demand for the country’s mineral exports and affect state spending, investment in upgrading and expanding infrastructure is expected to continue. Peru’s Ministry of Transport and Communications expects investment in transport to continue to grow, with another $10.2bn to be committed through new concessions set to be signed in 2016. These investments may take time to materialise, but will have the long-term benefit of improving conditions for the private sector to operate. The transport sector will remain a pillar of Peru’s economic future, as reducing the infrastructure deficit is key to sustaining the growth trends Peru has experienced in recent years.

With falling commodity prices taking their toll on Peru’s export revenues and GDP growth, the focus of the Ministry of Production (PRODUCE) has turned to the diversification of the economy and provision of greater added value to production. PRODUCE has set the target of returning Peru to 7% growth rates through private partnerships that will develop the country´s secondary and tertiary industries. Despite these efforts, the industrial sector is experiencing a slowdown, with sector GDP amounting to $9.8bn in the first five months of 2015, a 2.6% year-on-year decrease. Meanwhile, Peruvian retailers look set to take stock and focus on maximising revenues rather than rushing to open more floor space. The days of double-digit consumer growth may be a thing of the past, but medium-term expansion of between 3% and 4% in 2016 presents attractive prospects. While per-capita incomes remain low by regional standards, recovering commodities prices are expected to support the retail sector’s long-term potential.

Peru’s construction sector is experiencing a slight deceleration, falling from a few years of double-digit growth to more conservative figures in 2014 and 2015, following a reduction in public expenditure. Upcoming elections in 2016 and related government change can be expected to slow the rate of projects being allocated over the short term. However, a significant number of works in the pipeline will ensure activity over the coming years. As authorities gradually improve the environment for public-private partnerships, the infrastructure construction market is set to become easier to manage for Peruvian and foreign firms alike, ensuring the country remains a competitive destination for foreign direct investment. Meanwhile, although economic uncertainty weakened investment in the Real Estate sector for most of 2015, real estate development continues to offer significant opportunities. Housing demand remains high, and growth rates have encouraged the development of office, commercial and industrial real estate projects. This chapter contains an interview with Fernando Castillo, President, ICCGSA.