Peru News Roundup

Peru News

Fresh Peruvian Asparagus & Blueberries will be exported to the US according to a recent article in El Comercio. Both countries are developing systems to mitigate the risk of pests such as the fruit fly and allow more a more open process for exports to the US.

(Spanish Articles Translated Via Google Translate, Some Author Corrections for Clarity)

Import/Export

Source: Espárragos y arándanos peruanos se exportarían frescos a EE.UU. El Comercio Peru

Peruvian exports of asparagus and blueberries would be able to get fresh to the market in the United States by replacing the traditional fumigation risk mitigation systems.

This came off of the quote that held the Minister of Agriculture and Irrigation (MINAGRI), Juan Manuel Benites, and the head of SENASA, Jorge Barrenechea, with the sub secretary of agriculture in the country, Edward Avalos. The meeting gives an end to the regulatory part for shipments of both Peruvian products, considered the final stage of this process of access to the United States.

In the case of Peruvian exports of asparagus, we work hand in hand with the body of US APHIS (Animal and Plant Health Inspection Service, for its acronym in English) to implement systems to mitigate risk to suppress spraying this product.

Meanwhile, for blueberries an agreement that allows spraying in origin and allow the completion of the cold treatment destination has been made. Moreover, in areas of low prevalence of fruit flies, a mitigation strategy would be developed to recognize in the future as pest free areas.

A pilot program spraying blueberries, with the presence of American inspectors, plan in coordination with private industry in order to allow the loads at any point enter the United States without further restrictions will be developed.

Economy Slowing

Peru has seen its exports diminishing, and is looking to expand to markets that have not traditionally been destinations for Peruvian products. The fall in metal prices has had a large effect on Peruvian exports. Meanwhile, growth in exports of fruits and vegetable has increased, although not yet offsetting other large declines.

Source: Adex: Regional exports see fall of 23.6% – Peru this Week

In the first two months of 2015 Peru’s regional exports, excluding Lima and Callao, managed to produce a value of US$ 3.35 billion, registering a 23.6% fall compared to the same period last year, according to Perú21.

Primarily due to the fall in the prices of copper and gold, Peru’s regional exports figures took a fall as well in the first two months of this year.Following the results of the Association of Exporter (Adex), Lima and Callao however registered positive.

Adex reports that traditional exports decreased by 30.8% and were valued at US$ 2.4 billion. This primarily means a decrease in performance by the mining sector. Performing positively on the other hand were value-added exports such as agricultural and non-metallic mining.

Value-added exports were worth US$ 944 million and increased by 4.1% while non metallic mining increased 22.4%.The Adex export manager, Gabriela Gutierrez, said that the regions of Piura, Ica, Ancash, Arequipa, La Libertad, Moquegua, Cajamarca, Cusco and Pasco, finished the first two months with negative results.

That the non-traditional shipments performed positively into 2015, is evidence to Peru’s strength in agricultural products. For example, the National Chamber of Trade, Production and Services (Perucámaras) reported that in 2014 exports of non-traditional products from the northern region of Peru, alone increased 13.3% reaching US$ 2.8 billion.

Source: Peru looks to Asia and Africa for business opportunities – Peru this Week

Markets in Asia and Africa continue to grow positively, thus presenting themselves as appealing countries for Peruvian investments.

Kazakhstan, Indonesia, Nigeria, and Ghana have had great annual growth in the last five years and are therefore potential business opportunities for Peru, according to Gestion.

The Chamber of Commerce of Lima (CCL) said that as Peru grows simultaneously along with these markets, there is potential for a strong relationship among these countries.

“These four markets have a great potential for our exports because in the last five years they have seen a significant growth rate and high GDP per capita,” César Peñaranda, executive director of the Institute of Economics and Business Development (IEDEP) told Gestion.

In particular, Kazakhstan recorded a per capita GDP of over US$ 24,000 and from 2010-2014 it registered an annual growth rate of 6.1%.

On the other hand, Indonesia has a GDP per capita of US$ 10,157 and ranks 34th in the list of competitiveness of the World Economic Forum and with a population of 251,500,000. In 2014 they finished with a growth rate of 6%.

Ghana and Nigeria finished 2014 with growth rates of 8.6% and 6.4% respectively. However, their GDP per capita remains low with US$ 4,173 and US$ 6,082 respectively. Ghana is a country of population 27 million, while Nigeria is home to 177,500,000 citizens.

Peñaranda told Gestion that, “Our non-traditional exports could find an important market in these countries that should be explored.”

In the meantime, China remains one of Peru’s biggest markets, in Asia and world-wide. The Asian country is officially the largest product supplier for Peru, while it receives a large amount of agricultural products from its South American partner.

Source: Segura: economía local habría crecido 1,5% en primer trimestre  El Comercio Peru

The Minister of Economy and Finance (MEF), Alonso Segura, said the Peruvian economy would grow relatively lowduring the first quarter of the year and would reach only 1.5%.

During his presentation to Congress, after the parliamentary debate by a vote of confidence for the Cabinet, the head of the MEF said that this is due to economic and political seasonality. This, by the low level of spending of the new authorities of regional governments, which fell almost 50% during the first three months of the year.

This is a far cry from the 5% growth predicted just a few months ago, and confirms the definite slowdown that I predicted in December.

The Peruvian Sol

Peruvian Sol Continues to Decline

Source: Tipo de cambio llegó a S/.3,135 a pesar de intervención del BCR  El Comercio Peru

Reuters.- The stable exchange rate closed after official intervention offset the demand for dollars from foreign investors and companies as well as banks raised their positions before the maturity of currency swaps. The exchange rate ended at S / 3.135, a marginal increase of 0.03% compared to the S / 3.134 on Friday and hit a new high since the S / 3.148 of April 1, 2009.

LIma

A recent article appeared in Peru This Week which listed Lima as the most visited city in Latin America.

Source: Lima is the most visited city in Latin America – Peru this Week

América Economía found that in 2014 more visitors traveled to Lima than any other Latin American city. About 5.1 million international visitors arrived in Lima in 2014, making it the most visited Latin American city. Just two years before, 2.07 million tourists found their way to Lima, representing a 3 million increase in 2014, according to the business magazine’s data.

América Economía published on their website, their Chart of the Day where Lima makes the top of the list and way ahead of the game. Following after Lima in the Index of Global Destination 2014 Master Card is Mexico City with 2.75 million, Sao Paulo 2.51 million, Punta Cana 2.22 million, Buenos Aires with 2.11 million, San Jose 1.51 million, Rio de Janeiro 1.2 million, Bogota 940 thousand, Montevideo 850 thousand, and Quito 670 thousand.

As for the economic benefits, Master Card found that the tourists that visited Lima spent US$ 1.8 billion in 2014, representing an increase of 3.3% compared to 2013. This year, Lima was also listed as the 31st most visited capital in the world, finishing ahead of other international destinations such as Tokyo, Madrid, and Beijing. Odds are, most are headed to the “Best Place to visit in South America.”

Plaza de Armas – Lima, Peru

Plaza de Armas – Lima, Peru

©2015 Ben Gangloff

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