Despite an economic slowdown, Peru remains the star of Latin America’s economies this year.
BY JOACHIM BAMRUD
Peru’s economy, Latin America’s seventh-largest, may be slowing this year, but local and foreign investors remain upbeat on the country’s outlook. Not only has the Lima stock exchange been the world’s best performer this year, economists widely agree that Peru will see Latin America’s strongest growth this year. Last week, the government successfully sold $1 billion in 10-year, dollar-denominated bonds. And last month, it formally implemented the free trade agreement with the United States.
”I like the Peruvian story,” says Kathryn Rooney, senior emerging markets macroeconomic strategist at Bulltick Capital Markets. “I consider Peru as Chile was 10 years ago. They’re starting from a low base [and have] a lot of room to grow.”
Theresa Paiz-Fredel, Senior Director for Latin American Sovereign Rating at Fitch Ratings, agrees. “There are a lot of positive things going on in Peru,” she says. “They just implemented the FTA with United States [and] that will really help the investment environment [providing the] stable legal framework needed for investment…. At this point, looking relative to the rest of the region, Peru is in a better place to withstand the shock.”
Rooney expects Peru’s economy will grow by...
Keywords: Luis Castañeda, Credit Suisse, Exports, Fitch Ratings, GDP 2009, Gold, Ollanta Humala, Minerals, Standard & Poors