Peru’s economy is in the spotlight, going through its worst time since the global financial crisis. But Julio Velarde, Peru’s central bank chief, told beyondbrics on his way to the annual meeting of financial policymakers at Jackson Hole in the United States that this is simply, “a rough patch.”
Maybe more like a pothole, some may say, as the economy expanded just 0.3 per cent in June compared with a year earlier. Growth in Peru’s economy, once feted as a star inSouth America, slowed to 3.3 per cent in the first half of 2014.
A drop in investments and tumbling earnings from mineral exports caused by weaker prices and softer demand from Asia took a heavy toll. Lower mining output in the world’s third largest copper producer was also caused by issues at large mines. Continue reading »
The revolving doors of Peru’s cabinet are spinning out of control. Ollanta Humala, the president, this week named his sixth cabinet chief in less than three years, complicating an already difficult stretch for the government. Continue reading »
Is one of Latin America’s stars losing some of its shine? Amid worsening terms of trade and expected weaker output in mining and fisheries, Peru’s central bank appears to think so, at least for now.
In its latest quarterly report, the BCRP cut its outlook for GDP growth this year to 4.4 per cent from its previous estimate of 5.5 per cent. Next year’s outlook was also revised downwards, to 6 per cent from 6.7 per cent. Continue reading »
By Samuel George of the Bertelsmann Foundation
When the presidents of Chile, Colombia, Mexico and Peru meet on June 19 and 20 for the ninth Pacific Alliance summit in Nayarit, Mexico, they’ll likely debate a proposal that could transform their quietly successful pact while boosting Latin American unity.
At the urging of Chile’s Michelle Bachelet, the gathering is expected to broach the potential integration of the Alliance, which was formed among the four countries in 2012, and Mercosur, an older grouping that includes the regional heavyweights of Brazil and Argentina. The issue would represent a crossroads for the Alliance, however, since Mercosur does not generally share the enthusiasm for international trade shown by its neighbours on the Pacific coast. Continue reading »
Carlos Slim, Mexico’s telecoms tycoon, is both highly strategic and highly pragmatic.
Already fuming over his country’s telecoms reform, which is set to force him to offer free interconnection under new asymmetric rules, he now faces a former friend – AT&T – turning competitor as it buys DirecTV. Continue reading »
The Pacific Alliance is all the rage in Latin America. As today’s FT special report shows, the members of this newly-formed free trade pact include some of the region’s best-managed and most reform-minded economies: Chile, Colombia, Mexico and Peru. These countries do not represent some kind of Platonic ideal. They suffer problems aplenty. But their governments do pride themselves on hard-nosed business dealing rather than gassy ideology. That being the case, is there a way for portfolio investors to actually trade the idea? Continue reading »
By Lucien Chauvin and Andres Schipani
Ollanta Humala, Peru’s president, is in a tough spot. The country faces its most serious constitutional crisis in more than a decade on Monday, if lawmakers reject his cabinet in a vote of no confidence.
The crisis revolves not around government policy or the performance of Humala’s cabinet, but around the role of his wife, First Lady Nadine Heredia. Continue reading »
Those times of stellar annual growth rates of 6, 7 or 8 per cent that Peru experienced in recent years may be gone, and the country might now be dealing with a current account deficit.
But the Andean nation still has quite a vibrant economy, which in 2013 expanded by 5 per cent, the national statistics agency said on Friday. Continue reading »
It has been a while coming but after a UN ruling on Monday it is finally time for Chile and Peru to put their maritime differences behind them.
The International Court of Justice in The Hague has given Peru a chunk of the Pacific Ocean it did not have before, while Chile has retained its rich coastal fishing grounds. So, despite smug smiles and gnashing of teeth in some corners of both countries, what looks like a split sovereignty ruling should reinforce the pledge Peru and Chile have made to remain good neighbours. Continue reading »
When it comes to energy in Latin America, all eyes have been on Mexico’s plans to open its oil industry to private investment. But Peruvian officials stole some of that thunder at the weekend by saying the government planned to sell up to 49 per cent of state-run PetroPeru. Continue reading »
An IMF research paper shows how rare Latin American financial crises have been since 1998, when the world was rocked by EM currency crises. We’ve graphed the findings below.
Carlos Vegh and Guillermo Vuletin, the authors, think the continent has learnt from 1998. Successful countries like Brazil, Peru and Chile have stimulated their economies when GDP dipped; before 1998, they were less keen to do so. Continue reading »
Research company Wealth-X has released its annual report on “ultra high net worth individuals”. (For those prefer plain English, they mean the stinking rich.)
The super wealthy in the west have got even richer over the past year. In fact the super rich have got richer just about everywhere – bar in eight emerging and frontier countries including China, Brazil and Syria. Continue reading »
Wasn’t the talk in some corners of Lima that the Peruvian economy was already pointing upwards? It seems for policy makers it needed yet another push.
Surprising analysts, the central bank has cut its policy interest rate, which has been fixed at 4.25 per cent a year since June 2011, to 4 per cent. Continue reading »