Peru Exporter Guide 2010
Peru continues to be the best performing economy in Latin America, achieving sustained high growth and low inflation. Peru’s economy has been transformed by market-oriented reforms and privatizations and has met many of the conditions for long-term growth. In 2009, Peru’s Economy continued to grow even during the two years period of global financial crisis. Private consumption, anti-cyclical policies, and export earnings on recovering metals prices drove Peru’s GDP growth rate to 0.9 percent in 2009. To support the economy, the government implemented a US$12.3 billion stimulus program and pledged to spend US$3.2 billion mainly on infrastructure. As the economy has gained momentum, officials have begun to scale back these programs quickly.
The global economic crisis of 2008-2009 significantly affected the two pillars that made the Peruvian economy one of the most dynamic in Latin America between 2004 and 2008: investment and exports. Gross fixed capital formation, which had been growing at an average annual rate of 20.2% in real terms during the period 2004-2008, dipped by 14.2 percent in 2009. Similarly, total exports dropped by 15.2 percent in 2009 after averaging an annual growth rate of 25.3 percent between 2004 and 2008. However, adequate fiscal policy during the boom periods meant that the country had enough resources to afford a significant government stimulus package, avoiding economic contraction during the global economic crisis.