Peru is located on the west central coast of South America. It is bordered by Ecuador and Colombia to the north, by Bolivia and Brazil to the east, by Chile to the south, and by the Pacific Ocean to the west. Peru is a country with great diversity, and 30.9 million people (the estimate for 2013). The official language is Spanish, but Quechua and some other languages are still used by the minority. Peru has rich deposits of copper, silver, gold, lead, zinc, natural gas, petroleum, and urea.

 

Peru has achieved significant progress in its macroeconomic performance in recent years, with very dynamic GDP growth rates, stable currency exchange rates, and low inflation. In fact, over the past decade, the Peruvian economy has had the lowest annual average inflation rate in Latin America, at 2.9%, below that of Chile (3.2%), Colombia (4.9%), and Brazil (6.4%). There is also its impressive annual growth rate of approximately 5% of its GDP achieved in 2013, which gives the country the privileged ranking of one of the fastest-growing economies in the region, consistently achieving an accumulated annual average growth of approximately 5.6% over the past 14 years. Over the past decade, Peru’s GDP has tripled as a result of the country’s economic growth, moving increasingly towards a middle and upper-middle income country.

 

Peru has signed a number of Free Trade Agreements (FTAs) covering approximately 95% of its exports (December 31, 2013). The FTAs have been entered into with the United States, China, Thailand, the European Union, South Korea, Canada, Costa Rica, Chile, Mexico, Venezuela, Panama, Singapore and Cuba. It also has 29 Bilateral Reciprocal Investment Promotion and Protection Agreements. Finally, Peru has commenced trade negotiations corresponding to the Trans-Pacific Partnership Agreement, which includes Chile, the United States, Singapore, Australia, and New Zealand, among others. Additionally, Peru entered into the Framework Agreement for the Pacific Alliance in April 2011. This is a trading bloc that it forms part of together with Chile, Colombia and Mexico, aimed at encouraging regional integration and the greater growth, development, and competitiveness of their economies, as well as achieving the free circulation of goods, services, capital and people.

 

Peru seeks to attract both domestic and foreign investment in all sectors of the economy. It has adopted a legal framework for investments that requires no previous authorization for foreign investment. Additionally, it establishes the necessary regulations to protect the economic stability of investors from arbitrary changes in legal terms or conditions applicable to their projects and reduces government interference in economic activities. According to Doing business 2014, Peru ranks 42nd out of 189 countries in terms of ease of starting a company and doing business, and ranks second in Latin America, as corroborated by Forbes.