An Introduction to the Peruvian Economy. Renzo Del Giudice ( 洛子謙 )

Transcription

1 An Introduction to the Peruvian Economy Renzo Del Giudice ( 洛子謙 )

2 Introduction I would like to introduce you one of the best performing economies in Latin America: Peru. First, I will explain about the historical background and the modern development of the Peruvian society. Afterwards, you will appreciate macroeconomic indicators, financial statements and social economic challenges in Peru. An Introduction to the Peruvian Economy - Renzo Del Giudice 2

3 Peru s Map An Introduction to the Peruvian Economy - Renzo Del Giudice 3

4 1. Historical Background Ancient Peru: Cradle of many civilizations and Inca empire. Under the Spanish empire rule, Peru was the politic and economical center of South America. After the independence (1821), the Republic of Peru was involved in many wars, richness periods and economical crisis. An Introduction to the Peruvian Economy - Renzo Del Giudice 4

5 2. Modern Development of Peruvian Society Nowadays, Peru have a multicultural population with a high human development index (0, ). In the last 30 years, Peru went from being a country merged in economic crisis to be the country with the most consistent rate of development in Latin America. (Focus Economics) The country has strengthened its diplomatic, economic and cooperative relations with USA, Europe, and specially with Asia Pacific countries (specifically China). An Introduction to the Peruvian Economy - Renzo Del Giudice 5

6 3. Macroeconomic Indicators (2015) Population : 31.9 million. GDP : USD 191 billion. (P: 8%, S: 38%, T: 54%) GDP Per Capita : USD 5,993 Population Beyond Poverty Line : 17.8% Unemployment Rate : 6.5% Economic Growth : 3.3% External Debt (% of GDP) : 35.7 Imports Exports : USD 37.4 billion : USD 34.2 billion An Introduction to the Peruvian Economy - Renzo Del Giudice Source: Focus Economics6

7 3. Macroeconomic Indicators (2015) Peruvian PBI Evolution 1998: Asian Financial Crisis and El Niño Event. 2001: Private investment brought about by political instability. 2009: International Financial Crisis. 2014: Commodities Prices Fall. An Introduction to the Peruvian Economy - Renzo Del Giudice 7

8 4. Financial Indicators (2015) Fiscal Balance (% of GDP) : -2.1 Inflation (PPI annual variation in %) : 1.8 Policy Interest Rate (%) : 3.75 Stock Market (annual variation in %) : Exchange Rate (vs USD) : 3.41 Current Account Balance (USD bn) : -8.4 Current Account (% of GDP) : -4.4 International Reserves : USD 61.5 million. An Introduction to the Peruvian Economy - Renzo Del Giudice Source: Focus Economics8

9 4. Financial Indicators (2015) Credit Rating Standard & Poor s A- (Domestic) BBB+ (Foreigner) A (T&C Assessment) Outlook: Stable Moody s A3 Outlook: Stable Fitch BBB+ Outlook: Positive An Introduction to the Peruvian Economy - Renzo Del Giudice Source: Ministry of Economy 9(Peru)

10 4. Financial Indicators (2015) Background Founded in 1860, Lima Stock Exchange was in 2007, the most profitable stock exchange in the world. Nowadays, it is integrated with Santiago, Mexico DF and Bogota Stock Exchanges. Market Capitalization: USD 409, million Lima Stock Exchange Index: IGVBL (General Index of Lima Stock Exchange) ISVBL (Selective Index of Lima Stock Exchange) Most Profitable Shares (2015) Alicorp (26.32%), Hidrandina (21.73%), Backus & Johnson (13.31%), Sociedad Minera Corona (12.53%), Minera Buenaventura (11.17%) An Introduction to the Peruvian Economy - Renzo Del Giudice Source: Bolsa de Valores de 10 Lima

11 5. Social Economical Challenges Social Conflicts with Mining Activities Minery: aprox. 60% of Peruvian Exportations Currently conflicts: Conga, Tia Maria, Las Bambas Narcotrafic 1 st Cocaine Producer in the world Increased crime and money laudering Economic Inequality Lima has high developed living standards, unlike inside the country It generates lower quality in education and basic services An Introduction to the Peruvian Economy - Renzo Del Giudice 11

12 Thanks for your Attention! An Introduction to the Peruvian Economy - Renzo Del Giudice 12