Latin America and Peru: A Great Place to Do Business

Peru is a country in South America with a population of almost 30 million as of July, 2009. Originally home to the great Andean civilizations, including the Incas, in the year 1533 they were conquered by the Spanish conquistadors. In 1821 Peru declared its independence, and finally defeated and ousted the Spanish in 1824.  Since that time Peru has been struggling to find its own political way. Since 2006, when Alan Garcia Perez was elected the economy of Peru has experienced a robust performance on the macroeconomic level.

The geography of Peru profoundly affects its economy. The coastal region is arid, the Andes are further inland, and the areas bordering Colombia and Brazil are tropical. In the mountain regions of the Andes the extraction of minerals is a primary mover in the economy. The coast of Peru supplies a vigorous fishing industry with its wares and together the economy of Peru has recently shown a growth rate topping 4% a year from 2002-2006. During those years the rate of inflation was low and the currency exchange rate was stable.

More recently, in the years 2007-2008 the growth rate of the economy shot to 9% due to higher international prices for minerals and metals as well as an aggressive government policy to trade liberalization. In 2009 the economy slowed to 1% yearly growth, as a result of a global recession and lower prices for the export of commodities.