Peru is home to one of the seven world wonders, machu picchu. As a result of both its archeological and natural marvels, Peru attracts more than 4 million tourists a year. But make no mistake, Peru can’t be defined merely by its natural beauty. It is alsoone of the fastest growing economies on the continent. Peru is ranked as one of the most promising developing
markets worldwide. Combining the steady economic growth and investment-friendly policies are a recipe for conducting promising business endeavors.
When combining Peru with the Netherlands, we find that although the Dutch economy is more developed, Peru is experiencing a higher and more stable growth rate. Both economies are mainly serviced based. The Peruvian export market, however, is mostly based on natural resources such as mining and agricultural products. Peru’s imports from the Netherlands are mainly machinery and manufactured goods. In Peru, the bulk of the
economic activity is conducted in the Metropolitan Region ofLima, which accounts for 50.8% of GDP, while about 32% of the population lives in this area.
Because of its multitude of climate zones and differences in altitude Peru possesses the characteristics to produce a wide range of agricultural
products. The last 20 years, Peru has experienced an explosive growth in its agricultural sector. This development is mainly driven by the increasing popularity of ‘superfoods’, of which avocado is the perfect example.
The current expectations are a steadily increasing global demand for food products, paired with future production increases in Peru. This offers great opportunies for small and medium producers to offer niche products or products with an ‘origin’. This development will also increase the potential export market for sophisticated Dutch technologies and knowledge in the agriculture sector.
Peru is one of the world’s biggest producers of base and precious metals worldwide. Currently it is the second largest producer of copper in the
world and stands amongst the top four producers for silver, lead, zinc, tin, and molybdenum. Despite the price volatility of minerals, investments in the mining sector are key to the country’s economic growth. This succes can partly be attributed to the attractive legal and tax regime designed to support the industry.
The natural phenomena El Niño and La Niña have far-reaching consequences for the level of water related risk in the country. Both from floods and drougths. Even in non-extreme water years, mismanagement of water can result in substantial economic losses for the country. According to research by the Peruvian ANA (National Water Authority), every dollar spent on flood prevention could save on average 13 dollars of reconstruction costs. In this respect Peru almost doubles the UN average.
To guide reconstruction projects, as well as to prevent future disasters, the Peruvian government has created the Reconstruction with Changes Authority. The reconstruction authority has an initial budget of 7,8 billion USD, and expressed its interest in contracting the Dutch. Considering the Dutch expertise in water management and
its long history in successfully dealing with different water issues. The relationship between the Netherlands and Peru is excellent considering the water sector, thanks to various visits of Dutch Water Ambassador Henk Ovink, who remains in direct
contact with the Peruvian president and the reconstruction authority, and because of the membership of both countries of the High Level Panel on Water.