Peru: One of the fastest growing economies in the world.
In the last 10 years, Peru is one of the regions with the fastest economies in growth. From 2005-2014 the growth of rate was flying around 6.1% with low inflation (2.9%). All this, thanks to the effective well-judged macroeconomics policies and structural reforms in every sector of Peru have been the factors of high growth and low inflation scenario.
Despite the strong factors that Peru has, growth started to slow in 2014, thanks to some external conditions, an equivalent reduce in domestic confidence, and less investments. Some weather conditions actually affected the fishing industry and the public investment program thus decreasing the percentages of gross domestic investment and exports by 4.8% and 1%. With all these cons the country was still able to stand above every other region, and the inflation was moderately ahead of the target rate for that year.
Growth in 2015 it’s anticipated to be homologous to the growth of 2014. It is predicted and expected that the country will recover their average rate in 2016-2017. Massive mining programs will begin in the next few years. Moreover, Peru will put into effect a countercyclical fiscal policy that will help and conglomerate demand on the progressing application of structural reforms, thus ensuring the maintained confidence of private investors. The challenges that Peru economy growth can confront or have a negative impact are, a decline in commodity prices, just like the economic clash in China, which is a main trading partner of Peru. On the Gross Domestic Product fore (GDP), a harsh weather phenomenon just as “El Niño”, hold ups on the application of public or/and private investment strategies or apprehension and unreliability with the forthcoming elections in a presidential level.