Peru is ranked # 64 in the list of the best countries for business of the prestigious Forbes magazine, therefore, we finished the first quarter of 2020, as one of the best 64 countries in the world for business; And, despite the fact that position # 64 does not seem to be a great location on the world business map, the truth is that this position # 64 places us directly above South American countries such as: Colombia (rank # 67), Brazil (rank # 73), Argentina (rank # 76), Ecuador (rank # 99), Paraguay (rank # 114), Bolivia (rank # 128) and Venezuela (rank # 143); being only surpassed by: Chile (rank # 33) and Uruguay (rank # 58).
How the list of the best countries for business was prepared
The list of (Forbes: Best Countries for Business), is headed by the United Kingdom and was prepared by Forbes magazine in 2019, it is expected that the list will be updated in the middle of this year and we can see , perhaps, to Peru to climb positions to be better placed in the list of the best countries for Forbes business.
The list prepared by Forbes shows four fundamental variables: GDP growth (2.5% in the case of Peru), GDP per capita (US $ 6,600.00, in the case of Peru), Trade Balance / GDP (-1.1% in the case of Peru) and Population (31.3 million in the case of Peru); however, many more variables were analyzed, such as: Public Debt / GDP (25% in the case of Peru), Unemployment (6.9% in the case of Peru), Inflation (2.8% in the case of Peru), etc.
Profile of Peru according to Forbes
In the main article, Forbes magazine shows the profile of our country as follows:
Peru’s economy reflects its varied topography – an arid lowland coastal region, the central high sierra of the Andes, and the dense forest of the Amazon. A wide range of important mineral resources are found in the mountainous and coastal areas, and Peru’s coastal waters provide excellent fishing grounds. Peru is the world’s second largest producer of silver and copper. The Peruvian economy grew by an average of 5.6% per year from 2009-13 with a stable exchange rate and low inflation. This growth was due partly to high international prices for Peru’s metals and minerals exports, which account for 55% of the country’s total exports. Growth slipped from 2014 to 2017, due to weaker world prices for these resources. Despite Peru’s strong macroeconomic performance, dependence on minerals and metals exports and imported foodstuffs makes the economy vulnerable to fluctuations in world prices. Peru’s rapid expansion coupled with cash transfers and other programs have helped to reduce the national poverty rate by over 35 percentage points since 2004, but inequality persists and continued to pose a challenge for the Ollanta HUMALA administration, which championed a policy of social inclusion and a more equitable distribution of income. Poor infrastructure hinders the spread of growth to Peru’s non-coastal areas. The HUMALA administration passed several economic stimulus packages in 2014 to bolster growth, including reforms to environmental regulations in order to spur investment in Peru’s lucrative mining sector, a move that was opposed by some environmental groups. However, in 2015, mining investment fell as global commodity prices remained low and social conflicts plagued the sector. Peru’s free trade policy continued under the HUMALA administration; since 2006, Peru has signed trade deals with the US, Canada, Singapore, China, Korea, Mexico, Japan, the EU, the European Free Trade Association, Chile, Thailand, Costa Rica, Panama, Venezuela, Honduras, concluded negotiations with Guatemala and the Trans-Pacific Partnership, and begun trade talks with El Salvador, India, and Turkey. Peru also has signed a trade pact with Chile, Colombia, and Mexico, called the Pacific Alliance, that seeks integration of services, capital, investment and movement of people. Since the US-Peru Trade Promotion Agreement entered into force in February 2009, total trade between Peru and the US has doubled. President Pedro Pablo KUCZYNSKI succeeded HUMALA in July 2016 and is focusing on economic reforms and free market policies aimed at boosting investment in Peru. Mining output increased significantly in 2016-17, which helped Peru attain one of the highest GDP growth rates in Latin America, and Peru should maintain strong growth in 2018. However, economic performance was depressed by delays in infrastructure mega-projects and the start of a corruption scandal associated with a Brazilian firm. Massive flooding in early 2017 also was a drag on growth, offset somewhat by additional public spending aimed at recovery efforts.Forbes: https://www.forbes.com/places/peru/
The 10 best countries in the world for business
We present the list of the 10 best countries for business according to the prestigious Forbes magazine:
PIB per |
|Balanza comercial / PIB||Población|
|#1||Reino Unido||1.70%||$39,700||-3.80%||65.1 M|
|#3||Hong Kong||3.80%||$46,200||4.30%||7.2 M|
|#4||Países Bajos||2.90%||$48,200||10.50%||17.2 M|
|#5||Nueva Zelanda||3%||$42,900||-2.70%||4.5 M|
What is expected by 2021?
Although the date for updating the list of the best countries for business of Forbes magazine is not yet available, the truth is that the scenario looks promising for South American countries, due to the growth of the region and the low risk country that is being maintained in most countries, except for some of these. For now we have more to wait for the prompt update of this list to know what new position Peru will be in, and take advantage of the situation to boost the entry of new capital in healthy investments to our country.
Published in : GAIA Servicios.