INDEX   MACROECONOMIC INDICATORS   BUSINESS ENVIRONMENT   U.S. – PERU ECONOMIC RELATIONS   ABOUT AMCHAM PERU
MACROECONOMIC INDICATORS
MACROECONOMIC INDICATORSGEOGRAPHY AND DEMOGRAPHY Population: •   29.4 millions (2011) •   0-14 years: 29.6% (2011) Area: •...
MACROECONOMIC INDICATORSPeru in the regional context:                                          2011                       ...
MACROECONOMIC INDICATORS According to                                                  Perú: PBI                          ...
MACROECONOMIC INDICATORS       TRADE                                    PERU: Trade Balance                               ...
MACROECONOMIC INDICATORSTRADE: A CLOSER LOOKComposition of the Export Basket in 2011 Destination for Traditional Exports 1...
MACROECONOMIC INDICATORS TRADE: A CLOSER LOOK   Composition of the      Origin of Consumption Goods   Import Basket in 201...
Macroeconomic indicatorsBest performing                                Peru: GDP by economic activity                     ...
MACROECONOMIC INDICATORS Agroindustry                           Mining •   1st world producer of fish meal    •   1st worl...
MACROECONOMIC INDICATORS                                             Inflation                                            ...
MACROECONOMIC INDICATORS            Exchange Rate PEN/USD                                   Exchange Rate PEN/USD  Year   ...
MACROECONOMIC INDICATORS                                           Private Fixed Investment in Peru                       ...
MACROECONOMIC INDICATORSNet International Reserves amount to US$62.2 billions (Oct 2012)• Peru’s foreign debt is US$ 36.6 ...
MACROECONOMIC INDICATORS                                                Country risk                                      ...
MACROECONOMIC INDICATORS  Lima Stock Exchange: the 3rd most profitable stock market in  the world in 2010                 ...
MACROECONOMIC INDICATORS  All this has contributed to drive more than 3 million people out of  poverty over the past 7 yea...
BUSINESS ENVIRONMENT
BUSINESS ENVIRONMENT
BUSINESS ENVIRONMENT                                           EFTA                                                       ...
BUSINESS ENVIRONMENTGLOBAL COMPETITIVENESS INDEX (2011-2012)                                                              ...
BUSINESS ENVIRONMENTLEGALSYSTEM          Constitutional provisions for private property          Non-discriminatory trea...
BUSINESS ENVIRONMENTTAXES                         Tax                                  Rate                               ...
U.S. – PERU ECONOMIC RELATIONS
U.S. – PERU ECONOMIC RELATIONS                                                                         Peru - U.S.: Trade ...
U.S. – PERU ECONOMIC RELATIONS  United  States is  also Peru’s  main  foreign  investor
U.S. – PERU ECONOMIC RELATIONS Nowadays, American investment is more diversified and keeps increasing its share in more ec...
U.S. – PERU ECONOMIC RELATIONS                    U.S. COMPANIES OPERATING IN PERU•   AmCham Peru groups 137 American comp...
ABOUT AMCHAM PERU
ABOUT AMCHAM PERU                                MISSION       The American Chamber of Commerce of Peru (AmCham Peru) is a...
ABOUT AMCHAM PERU  AmCham Peru has nearly 3,000 associates, representing 580   companies  AmCham Peru gathers companies ...
ABOUT AMCHAM PERU All AmCham Peru members are part of the Association of American Chambers of Commerce in Latin America (A...
ABOUT AMCHAM PERU                               Executive Board               Presided by the Ambassador of the United Sta...
AMCHAM PERU ORGANIZATION                                        TRADE CENTER    Through the Trade Center, AmCham promotes ...
AMCHAM PERU ORGANIZATION                  ABE (ASSOCIATION OF GOOD EMPLOYERS)ABE is a Corporate Social Responsability init...
AMCHAM PERU ORGANIZATION                             ARBITRATION CENTER  AmCham Peru’s Arbitration Center believes not onl...
WHAT WE DO? TRADE AND INVESTMENT FACILITATION, PROTECTION AND DEFENSE OF INTERESTS  Committees       •   Alumni USA       ...
WHAT WE DO? TRADE AND INVESTMENT FACILITATION, PROTECTION AND DEFENSE OF INTERESTS    Events•   AmCham organizes and holds...
WHAT WE DO? TRADE AND INVESTMENT FACILITATION, PROTECTION AND DEFENSE OF INTERESTS  Publications   CONTACT   Trimestral bi...
AmCham Peru
AmCham Peru
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AmCham Peru

  1. 1. INDEX  MACROECONOMIC INDICATORS  BUSINESS ENVIRONMENT  U.S. – PERU ECONOMIC RELATIONS  ABOUT AMCHAM PERU
  2. 2. MACROECONOMIC INDICATORS
  3. 3. MACROECONOMIC INDICATORSGEOGRAPHY AND DEMOGRAPHY Population: • 29.4 millions (2011) • 0-14 years: 29.6% (2011) Area: • Total: 1.285.215,6 km2 • Coast: 11,7% • Highlands/Andean: 28,4% • Jungle: 59,9% Life expectancy at birth: • 74 years (2011)
  4. 4. MACROECONOMIC INDICATORSPeru in the regional context: 2011 48,000 Country GDP Population GDP per Capita Foreign Direct Investment (FDI) in Latin America & (Billion US$) (Millions) (US$)United States 15,227.07 312.891 48,665.81 Caribbean, 2010 38,000 (in US$ millions)Brazil 2,421.64 194.933 12,422.94Mexico 1,167.12 109.713 10,637.95Argentina 456.817 40.900 11,168.98Colombia 307.845 46.052 6,684.78 28,000Venezuela 294.271 29.767 9,885.86Chile 231.302 17.399 13,294.33Peru 167.846 30.009 5,593.14 18,000Ecuador 65.032 15.005 4,334.08Dominican Republic 54.912 10.052 5,462.81Guatemala 46.383 14.708 3,153.67Uruguay 43.265 3.369 12,843.72 8,000Costa Rica 40.297 4.626 8,710.96Panama 29.799 3.590 8,299.70El Salvador 23.169 5.904 3,924.08 -2,000 Mexico Haiti Brazil Uruguay Honduras Panama Dom. Rep. Colombia Nicaragua Guatemala Venezuela Peru Paraguay Bolivia Argentina Costa Rica Ecuador El SalvadorBolivia 22.778 10.629 2,143.05 ChileParaguay 22.143 6.530 3,390.94Haiti 7.724 10.013 771.373Nicaragua 7.05 5.889 1,197.24Source: IMF Source: ECLAC / United Nations (UN)
  5. 5. MACROECONOMIC INDICATORS According to Perú: PBI (Var. Anual %) the IMF, Peru 12.0 will have the 9.8 8.8 10.0 8.9 Porcentaje highest GDP 8.0 6.8 7.7 6.9 growth rate in 6.0 5.04.0 5.0 Latin America in 4.0 2.0 0.2 0.9 2012 0.0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source: BCRP Source: BCRP GDP Growth estimate 2012: 6.3% 2013: 6.9%
  6. 6. MACROECONOMIC INDICATORS TRADE PERU: Trade Balance Top destinations of exports in 2011 1. China 2. United States 50,000 Imports Exports Trade Balance 46,268 3. Switzerland 4. Canada 40,000 31,019 35,565 5. Japan 28,094Million US$ 30,000 26,962 23,830 20,000 12,809 17,368 Top origins of imports in 2011 10,000 7,026 7,714 9,091 1. United States 2. China 0 3. Brazil 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 4. Ecuador 5. Argentina Source: SUNAT
  7. 7. MACROECONOMIC INDICATORSTRADE: A CLOSER LOOKComposition of the Export Basket in 2011 Destination for Traditional Exports 1. China 15% 2. United States 13% Destination for Non Traditional Exports 3. Switzerland 13% 4. Canada 9% 1. United States 23% 5. Japan 5% 2. Venezuela 9% 3. Colombia 8% 4. Ecuador 6% Number of Tariff Items 5. Chile 6% 1. United States 2,305 10. China 3% 2. Canada 804 18. Japon 1% 3. Japan 702 19. Canada 1% 4. Suiza 421 Source: SUNAT 5. China 358
  8. 8. MACROECONOMIC INDICATORS TRADE: A CLOSER LOOK Composition of the Origin of Consumption Goods Import Basket in 2011 1. China 15% 2. Colombia 13% 3. United States 13% 4. Colombia 9% 5. Mexico 5% Origin of Non Consumption Goods (Raw and Intermediate Materials, Capital Goods, Construction Material) 1. United States 9% 2. China 6% 3. Brazil 3% Source: SUNAT
  9. 9. Macroeconomic indicatorsBest performing Peru: GDP by economic activity Annual % variation 2008 2009 2010 2011economic sectors in Agriculture 6.7 2.3 4.3 3.82011: Agriculture and agroindustry 6.6 0.9 4.2 2.8 Livestock 6.9 4.4 4.4 5.2 Fishing 6.2 (7.7) (16.6) 29.7 Mining and hydrocarbons 7.6 0.4 (0.8) (0.2)• Fishing Metallic mining 7.3 (1.4) (4.9) (3.6) Hydrocarbons 10.3 16.1 29.5 18.1• Hydrocarbons Manufactures 8.5 (7.2) 13.6 5.6 Primary resources processing 7.6 0.0 (2.3) 12.3• Primary resources Non primary 8.7 (8.5) 16.9 4.4 Electricity and water 7.7 1.2 7.7 7.4 processing Construction 16.5 6.1 17.4 3.4 Commerce 12.8 (0.4) 9.7 8.8 Other services 9.0 3.8 8.7 8.3 Source: INEI
  10. 10. MACROECONOMIC INDICATORS Agroindustry Mining • 1st world producer of fish meal • 1st world producer of silver • 1st world producer of paprika • 2nd world producer of copper and zinc • 2nd world producer of asparragus • 3rd world producer of tin • 2nd world producer of artichokes • 4th world producer of lead • 6th world producer of coffee • 6th world producer of gold
  11. 11. MACROECONOMIC INDICATORS Inflation Among the lowest expected inflations in LA (Annual % var.) & the Caribbean according to the IMF 8.0 6.7 6.0Percentage 3.9 4.0 2.5 3.5 2.1 Inflation estimates 2.0 1.5 1.5 1.1 0.0 0.3 2011= 3,3% -2.0 2012 = 2,5% 2002 2003 2004 2005 2006 2007 2008 2009 2010 Source: IMF Source: BCRP
  12. 12. MACROECONOMIC INDICATORS Exchange Rate PEN/USD Exchange Rate PEN/USD Year (Annual Average) (Annual % Var.) 2001 3.51 2002 3.52 2003 3.48 10.00 2004 3.41 2005 3.30 2006 3.28 Percentage 5.00 2.73 2007 3.13 0.52 0.27 2008 2.93 0.00 2009 3.01 2010 2.83 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 -5.00 -1.09 -1.88 -3.43 -0.67 -4.45 -6.50 -5.98 Exchange Rate 1/ -10.00 2011: 2,60 PEN/USD Source: BCRP The Peruvian Nuevo Sol (PEN) is one of theBCRP most stable currencies in the world
  13. 13. MACROECONOMIC INDICATORS Private Fixed Investment in Peru (As % of GDP) 24.0 22.0 20.0 Efective 19.2 19.9 P.F.I estimates Expected Percentage 18.0 2012 = 21.2% 16.0 14.0 2012 = 21.4% 12.0 Source: MEF 10.0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source: BCRP For every 1% annual variation in Private Fixed Investment, there is a direct 0.25% variation in GDP.
  14. 14. MACROECONOMIC INDICATORSNet International Reserves amount to US$62.2 billions (Oct 2012)• Peru’s foreign debt is US$ 36.6 billions (58.9% of NIR)• Peru’s NIR represents 32% of the GDP• This NIR ratio doubles some of the region’s leading economies: Brazil (15.6%), Chile (14.8%), and Mexico (13.9%)• It triples Colombia’s ratio (9.8%).
  15. 15. MACROECONOMIC INDICATORS Country risk (Stripped spread in basic points) 800 600 Peru 400 380 Latin EMBI+ 200 187 0 J- M M J S N J- M M J S N J- M M J S N J- M M J S N J- M M 07 08 09 10 11 Source: BCRP Country S&P Fitch Moodys Chile AA AA- Aa3 Peru holds Investment Mexico A- BBB+ Baa1 Brazil A- BBB Baa2 Grades from all three top Peru BBB+ BBB+ Baa2 rating agencies Colombia BBB+ BBB Baa3 Venezuela B+ B+ B1 Argentina Bu B B3 Bolivia B+ B+ B1 Ecuador B- B- Caa2
  16. 16. MACROECONOMIC INDICATORS Lima Stock Exchange: the 3rd most profitable stock market in the world in 2010 65% World Stock Markets Average Return, (%) 60 2010 51.83 50 40 37.59 33.57 30 20.02 18.63 20 16.9116.06 12.7811.03 9 10 5.32 1.04 0 Hong Kong Frankfurt London São Paulo Euro Santiago Lima Caracas Shanghai B. Aires Bogotá NY S&P 500 Madrid NY NASDAQ NY DJ Mexico Tokyo -3.01 -10 -5.85 -14.31 -20 -17.43 Source: Bloomberg
  17. 17. MACROECONOMIC INDICATORS All this has contributed to drive more than 3 million people out of poverty over the past 7 years Poverty and GDP growth 12 60 49 49 9.8 10 45 8.9 8.8 50 Real growth rate (%) 39 % of population 8 7.7 36 40 6.8 35 31 6 5 30 4 20 2 0.9 10 0 0 2004 2005 2006 2007 2008 2009 2010 GDP growth Poverty Source: BCRP and INEI
  18. 18. BUSINESS ENVIRONMENT
  19. 19. BUSINESS ENVIRONMENT
  20. 20. BUSINESS ENVIRONMENT EFTA Russia Canada European Union U.S.A. Japan China Mexico Morocco Korea India ACE 8 Central America CARICOM Thailand Vietnam Andean Community Singapore Brunei MERCOSUR ACE 58 Australia Chile South Africa Access to several markets New Zealand Ongoing agreements Close to start negotiations Signed agreements Future negotiations Under negotiation process
  21. 21. BUSINESS ENVIRONMENTGLOBAL COMPETITIVENESS INDEX (2011-2012) Structural Problems: Colombia Institutions Chile LA Average • Lack of Infrastructure 7 Innovation Infrastructure Peru (mainly transport) 5 • Poor health system; Business Sophistication Macroeconomic Environment 3 bureaucratic burden; 1 weakness of institutions Market size -1 Health and Primary Education • Bad quality education; absence of innovation and technology Technological Readiness Higher Education and Training • Restrictive labor regulations Financial Market Development Goods and Market Efficiency Labor Market Efficiency • Inneficient judicial system Source: World Economic Forum (WEF) • Corruption • Informality
  22. 22. BUSINESS ENVIRONMENTLEGALSYSTEM  Constitutional provisions for private property  Non-discriminatory treatment for international investors  Irrestrictive access to most economic sectors  No performance requirements  Free transfer of capital  Free competition  Freedom to purchase stocks and bonds from locals  Freedom to access internal and external credit  Free remittance of profits, dividends and royalties
  23. 23. BUSINESS ENVIRONMENTTAXES Tax Rate 30% Corporate profits Agriculture and aquaculture 15% INCOME Dividends 4.10% Royalties 30% Interest rate on loans form abroad 4.99% Value Added Tax (VAT) 18% Financial Transactions Tax (ITF) 0.005% Temporal tax to net assets (ITAN) for more 0.4% than S/. 1000,000 Varies up to 125% for a Excise tax (*) few products * Fuels, luxury goods, liquors and cigarettes
  24. 24. U.S. – PERU ECONOMIC RELATIONS
  25. 25. U.S. – PERU ECONOMIC RELATIONS Peru - U.S.: Trade Exchange (US$ millions) TRADE 7,000 Exports 5,625 5,836 5,720 6,000 5,341 5,556 United States is Peru’s top 5,000 Imports 4,729 4,000 Trade Balance 3,563 trading partner for both 3,000 2,410 exports and imports (18% of 2,000 1,751 1,980 total trade exchange) 1,000 0 -1,000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010Main products exported to the U.S. in 2010 Main products imported from the U.S. in 2010Copper cathodes, minerals (gold, molybdenum, Petroleum-based products (diesel mainly), wheat,tin, zinc, silver), petroleum-based products, dumping lorries, hard yellow corn, polyvinyl chloridecoffee, asparagus, cotton apparel, artichokes, (PVC), Polyethylene, steel scrap, cotton, soy oil, diggingliquefied natural gas, grapes, shrimp tails, sugar, machines, acrylonitrile, self-propelled front-end shovelpaprika, jewelry, scallops, mangoes, etc. loaders, vaccines for human medicine, etc. Source: SUNAT
  26. 26. U.S. – PERU ECONOMIC RELATIONS United States is also Peru’s main foreign investor
  27. 27. U.S. – PERU ECONOMIC RELATIONS Nowadays, American investment is more diversified and keeps increasing its share in more economic activities.
  28. 28. U.S. – PERU ECONOMIC RELATIONS U.S. COMPANIES OPERATING IN PERU• AmCham Peru groups 137 American companies from different economic sectors (banking, mining, energy, pharmaceutical, telecommunications, food, software, etc.).• U.S. based Hunt Oil has made the largest single investment in the history of Peru (US$ 3.8 billion invested in a natural gas export project).• American companies with the largest operations in the Peruvian market:
  29. 29. ABOUT AMCHAM PERU
  30. 30. ABOUT AMCHAM PERU MISSION The American Chamber of Commerce of Peru (AmCham Peru) is an organization representing American, Peruvian and non-American foreign businesses. It promotes the free market system, fostering trade and investment between Peru and the United States, within a framework of social responsibility, values and business ethics
  31. 31. ABOUT AMCHAM PERU  AmCham Peru has nearly 3,000 associates, representing 580 companies  AmCham Peru gathers companies that:  Sell a total amount equivalent to 60% of Peru’s GDP  Pay more than 60% of the annual Income Tax  Nearly 30% of them are American companies that have invested more than US$13 billions in assets in Peru
  32. 32. ABOUT AMCHAM PERU All AmCham Peru members are part of the Association of American Chambers of Commerce in Latin America (AACCLA) • 23 chambers of commerce • 21 countries in Latin America and the Caribbean AACCLA is made up of more than 20,000 members • 85% of the investments in the region AmCham Peru is also part of the United States Chamber of Commerce (USCC) • The world’s largest federation of businesses • More than three million members
  33. 33. ABOUT AMCHAM PERU Executive Board Presided by the Ambassador of the United States Executive Director Aldo Defilippi Government and Legislative Relations Monitoring and follow-up on policies and legislation that impacts trade, investment, and the interests of AmCham’s associates Economic Analysis Analysis of economics, political and social contexts that impacts trade, investment, and the interests of AmCham’s associates Corporate Communication Communication and promotion of the work done by AmCham
  34. 34. AMCHAM PERU ORGANIZATION TRADE CENTER Through the Trade Center, AmCham promotes commercial exchange and businessesbetween Peruvian and American entrpreneurs, in order to increase our associates imports and/or exports, and to identify business opportunities in both markets. SERVICES• Permanent commercial orientation • Participation in fairs and missions• Data base of American buyers and suppliers • Capacity-building workshops and• Information publication on importing and seminaries exporting
  35. 35. AMCHAM PERU ORGANIZATION ABE (ASSOCIATION OF GOOD EMPLOYERS)ABE is a Corporate Social Responsability initiative that seeks to promote good employer labor practices. MISSION To associate firms known for the respect towards their personnel, through a certification process and their compromise to fulfill the standards established by theAssociation and to demand the same sort of internal practices from their suppliers, in order to improve the quality of employment in the country, and, consequently, enhance national productivity.
  36. 36. AMCHAM PERU ORGANIZATION ARBITRATION CENTER AmCham Peru’s Arbitration Center believes not only in the necessity of generating mechanisms to guarantee legal certainty and stability, but pledges to ensure that such mechanisms are abideded by arbitrators, lawyers and parties, creating a reliable space for conflict resolution.
  37. 37. WHAT WE DO? TRADE AND INVESTMENT FACILITATION, PROTECTION AND DEFENSE OF INTERESTS Committees • Alumni USA • Infrastructure, Energy, and Mining • Executive Assistants • Internet • Association of Good • Marketing Employers • Intellectual Property • Economic Affairs • Human Resources • Financial Affairs • Supply Chain Management • Legal Affairs • Tecnology and Communications • Labor Affairs • Tourism • Tax Affairs • OSAC – Overseas Security Advisory • International Trade Committee • Sustainable Development
  38. 38. WHAT WE DO? TRADE AND INVESTMENT FACILITATION, PROTECTION AND DEFENSE OF INTERESTS Events• AmCham organizes and holds around 300 events each year.• In 2011 • 281 meeting events (forums, luncheons, work groups, committees) • 6 missions trade abroad, and hosted 6 foreign missions. • International Arbitrarion Diplomate, and negotiation workshops.
  39. 39. WHAT WE DO? TRADE AND INVESTMENT FACILITATION, PROTECTION AND DEFENSE OF INTERESTS Publications CONTACT Trimestral bilingual magazine on business and economics. AMCHAM NEWS Monthly bulletin with analytical articles and monitoring of legislative activities.

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