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 »
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 »
The times of the rip-roaring annual growth rates of 7 or 8 per cent that Peru has witnessed in recent years might be over but the Andean country is still one of Latin America’s most dynamic economies.
That, at least, is according to its finance minister Luis Miguel Castilla (pictured), who told beyondbrics that the economy will recover to some 6 per cent “or even more” next year – thanks in part to infrastructure spending, a recovery in business confidence, and strong mining investment that is expected to double the country’s copper production by 2016. Continue reading »
One day Ollanta Humala, Peru’s president, is unnerving investors with a hankering for state-run enterprise, the next he is making it easier for miners to push through projects despite community opposition.
According to Reuters, Humala is on the verge of reneging on his key election pledge to give Andean indigenous communities the right to better consultation over mining projects near their homes. Continue reading »
Source: Jockey Plaza
Millionaires might seem like chump change in this age of trillion-dollar deficits and billion-dollar bailouts.
But in Peru, new millionaires are just another indicator of the kind of strong economic growth that prompted the International Monetary Fund to brand the Andean economy shock-resistant. A reverse canary-down-the-mine, if you will. Continue reading »
The golden pre-Incan and Incan relics on display at the lobby of the Banco Central de la Reserva del Peru, the central bank, seem like good imagery of abundance for an economy that is currently one of the region’s darlings.
“We are doing very well,” Julio Velarde, Peru’s central bank chief, told beyondbrics in his windowless office, with mahogany-covered walls. Continue reading »
Like many emerging markets, Peru has been fighting a war – a currency war to be precise.
The country’s currency, the sol, jumped to a 15 year high last week after the US Federal Reserve said it would launch a third round of quantitative easing. And it looks like Lima has decided enough was enough.
The Andean country’s central bank changed its intervention strategy on Friday to increase volatility in the currency. Continue reading »
Unity makes strength. That, at least, appears to be the logic behind Cemento Andino’s move to merge into Peru’s biggest cement maker, Cementos Lima, to create the strongest player in the local market, the Andean Cement Union.
The merger is timely. The new company will create the scale needed to fend off competition from Mexico’s cement titan, Cemex, which is already importing and building a greenfield plant in Peru. Continue reading »
Will Peru have to start taking advantage of its international reserves and counter-cycle fund sometime in the not-so-very-distant future?
A gloomy April suggests yes. The world’s second biggest silver, copper and zinc producer and sixth biggest gold producer has logged its first monthly trade deficit since April 2008, as well as a steep drop in gold production. Continue reading »
Has Peru replaced Brazil as Latin America’s currency warrior?
Less than two months after it said it would not impose capital controls to stem the rise of its currency against the US dollar, Peru has gone ahead and done just that.
On Monday, the Andean country said it was raising deposit requirements on bank accounts to curb credit expansion and weaken the sol. Continue reading »
For a country that counts China as its biggest trade partner, Peru is surprisingly sanguine about the impact that a Chinese slowdown could have on its economy.
Even as Brazil – another country that has prospered on the back of the Chinese-led commodities boom – this week revealed a sharp pull back in GDP growth for 2011 and Beijing surprised the market by reducing its annual GDP growth forecast for the first time in eight years, Peru is going the other way, revising upward its growth forecast from 5.4 per cent to 5.7 per cent. Continue reading »
What a difference six months can make. When Ollanta Humala was elected as Peru’s president, markets crashed and business confidence plummeted.
The onetime close ally of Venezuela’s radical leftist president Hugo Chávez had pledged a new, centrist and business friendly agenda to improve social inclusion.
Scepticism ran deep. But having sold a smidge over half of the Peruvian electorate on his “investment = social inclusion” formula, Humala also appears to be winning over investors six months on. Continue reading »