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With an eye to bridge the divide between socioeconomic development and education, the Peruvian government has allocated a 30% increase to the education sector in the 2012 budget and has announced plans to build 400 new schools and hire 12,000 teachers. Enrolment levels in higher education institutions continue to grow, with 103 public and private universities currently operating in the country and a number of technical and vocational institutions also offering professional certifications. Meanwhile, the government is instituting a new plan that will bring universal health insurance by 2013. With 30% of the population lacking health insurance, this will be a challenge and require major public investment. Additionally, clearer regulations and guidelines in the health care sector will promote the expansion of higher-quality care and medications.

With visitor numbers having risen to 2.5m in 2011, representing a 9% increase year-on-year, the government is developing tourist destinations outside traditional travel hotspots. While the focus has traditionally been on the country’s many historical and cultural sights, the sector is now seeing increased demand for business tourism services. Ecotourism is also a growth area, with more tourists coming to Peru to see the many wild plant and animal species of the Amazon. Niche segments also have a good deal of potential for expansion, and efforts are being made to diversify the options available to visitors and boost local economies throughout the country. This section includes an interview with Claudia Cornejo, Vice-Minister of Tourism.

While Peru remains a mainstay in products such as asparagus and fishmeal, areas like coffee and organic produce are where new growth is likely to come from. Agricultural exports increased by more than $800m to reach $4.8bn in 2011, with the US being the top destination. Peruvian coffee in particular is gaining an international reputation for quality, especially in new markets, and organics are a welcome value-added alternative for many of the country’s small farmers. The government is turning its eye to improving agricultural infrastructure, particularly with regard to irrigation and distribution. Additionally, the creation of more Peruvian agricultural brands, such as Juan Valdez coffee, could have tremendous positive effects on the sector. This sector includes an interview with Carlos Pinillos González, CEO, Tecnológica de Alimentos.

With expansion of 3.34% in 2011, the construction sector looks primed for further growth, due in part to a need for new housing evidenced by the country’s housing deficit of some 2m units. The government has publicly announced a goal to build 500,000 housing units by 2016, and there are a number of opportunities for public-private partnerships in the sector. While the real estate market has tended to focus on luxurious, high-end private homes, the housing deficit means the government and developers alike are turning to low- and middle-income housing. The private sector seems poised to take on a larger role, while other segments likely to benefit from the new focus include cement and prime office space providers. This section includes interviews with Mario Alvarado Pflucker, CEO, Graña y Montero; and Jorge Barata, Superintendent, Odebrecht.

With more than 2400 km of Pacific coastline, Peru is well placed to take advantage of increasing levels of trade in the Asia-Pacific region. As China has overtaken the US as the country’s biggest trading partner, Peru has turned its attention to improving transport and logistics to facilitate the flow of Asia-bound exports. For example, the Ministry of Transportation and Communications in late 2011 announced a $20.5bn project to upgrade transportation infrastructure. The plan calls for upgrades to roads and highways – including Peru’s portion of the Interoceanic Highway, which runs from Peru’s Pacific coast to Brazil’s Atlantic coast – as well as the expansion of the rail network and upgrades to Lima’s Jorge Chavez International Airport and the construction of a new airport in Cuzco. This section includes interviews with Carlos Paredes, Minister of Transport and Communication; and Jorge Vilches, CEO, LAN.

A number of new free trade agreements – including with the US, Canada and Singapore – and a shift of focus toward value-added production have boosted the industrial sector. The government is now concentrating on growing the export activity of small and medium-sized enterprises (SMEs), which make up more than 99% of Peruvian companies. The textile business continues to thrive, with large quantities of finished fabrics being shipped abroad. Peru is keen to grow in petrochemicals as well, and has hopes of establishing the first petrochemicals production centre in Pacific South America. Meanwhile, retailers are looking outside of Lima for growth opportunities as the sector continues to expand. This section includes an interview with Pedro Olaechea, President, National Society of Industry.