Covid-19 left 30% of the population in poverty – INEI

The Coronavirus pandemic left 30% of the Peruvian population in poverty, according to data from the National Institute of Statistics and Informatics (INEI). This percentage is equivalent to 9.82 million people and represents a regression to the poverty levels of 2010. The paralysis of most activities, due to the strict quarantine applied in 2020, was the main cause behind the increase in poverty in the country.

Moody’s changed Peru’s A3 rating outlook to negative after weakening institutions

Moody's changed the outlook on Peru's long-term foreign and local currency A3 issuer ratings to negative from stable. This change reflects Moody's view that an increasingly polarised and fractured political environment has been undermining the effectiveness of the country's policymaking, leading to a progressive deterioration in Peru's institutional strength. If sustained, this erosion will undermine economic resilience and continue to weigh on business sentiment and negatively affect investment.

Economy up 3.8% in 1Q 2021

Peru's Gross Domestic Product (GDP) grew 3.8% in the first quarter of the current year if compared with the similar period of 2020, following the contraction registered in the four previous quarters, the National Institute of Statistics and Informatics (INEI) reported. GDP growth was influenced by the increase in domestic demand (6.5%), while net exports decreased due to the drop in exports (-5.5%) and the increase in imports (5%).

GDP grew 18.21% in March 2021

Peruvian GDP increased 18.21% last March boosted by favorable results from the majority of economic sectors, the National Institute of Statistics and Informatics (INEI) reported. However, INEI pointed out that production in March 2021 has not surpassed the levels of March 2019, showing a -1.60% reduction.

Peruvian coffee reaches 44 markets, exports total over 3.5 million bags in 2020

Peru cemented its position as one of the main coffee exporters in the world last year, reaching 44 international markets. As reported by the Ministry of Agrarian Development and Irrigation (Midagri), exports remained stable in 2020 at 3.5 million bags. The top destinations for Peruvian coffee exports were markets in Europe and the United States.

Peru receives Germany’s $7,2 mn contribution for forestry program

The Ministry of Economy and Finance accepted a non-reimbursable financial contribution granted by the German Development Bank (KfW), worth up to the sum of €6 million ($7,2 million), to partially finance the Promotion and Sustainable Management of the Forest Production in Peru investment program. According to Ministerial Resolution No. 145-2021-EF/52, published in the official newspaper El Peruano, the contribution … Continue reading Peru receives Germany’s $7,2 mn contribution for forestry program

Tax collection grew by 86.5% in April

Tax collection in April totalled S/14.82 billion ($3.87 billion), which was S/7.06 billion more than in the same month last year and a growth of 86.5%, informed the National Superintendence of Customs and Tax Administration (Sunat). In the case of income tax, S/8.13 billion was collected, an increase of 71.9% compared to April 2020. IGV collection reached S/5.90 billion, a growth of 70.7%.

Peruvian exports totalled $3.65 bn in March, up 32.5%

Peruvian exports amounted to $3.65 billion in March 2021, 32.5% more than the same period in 2020, said the Lima Chamber of Commerce (CCL). Eight out of the ten major destinations showed a positive growth. They include China, South Korea, Canada, Japan, India, the Netherlands, Switzerland, and Spain. The largest export amount was $1.08 billion, in sales to China, which cemented its position as the top destination for Peruvian exports.

75% of companies are postponing investments in Peru due to electoral uncertainty

Confidence to invest in Peru deteriorated in April from 3 points in February to 27 points in April, according to an SAE survey. The survey of 300 companies revealed that electoral uncertainty is the main reason for the decline in confidence. According to the survey, 75% of executives opted to postpone some short-term investment decisions. 4% decided to suspend their investment decisions indefinitely and 37% said they are likely to postpone their investments until after the second electoral round on 6 June.