Population (2017): 31 million
GDP (2017): US$211.4 billion
World Bank “Ease of Doing Business” Rank (2018): 58th
Bilateral Trade with Singapore: S$171.1 million
Trading Partner Rank (2017): Singapore's 10th largest trading partner in Latin America and the Caribbean, and Singapore’s 90th largest trading partner worldwide
As one of the most open economies in Latin America and the Caribbean, Peru has prioritised FTAs to promote export-led growth, fueled by the country’s rich natural resources. Government policies have focused on expanding the country’s network of trade partners and promoting private investment in export-related industries.
In Peru, Singapore companies will find trade and investment opportunities in industries such as infrastructure (master-planning for townships and industrial development; water and waste management solutions; urban transport), technology (agri-tech; intelligent transport systems; info-communications technology; e-government solutions), agriculture (agri-business and trading) and education.
With its rapidly growing industries and burgeoning middle class – projected to account for one third of all households by 2019 – Peru is expected to maintain its position as one of the fastest growing economies in South America. Its GDP growth rate is expected to be 3.8% in 2018, according to the World Bank. After more than a decade of robust growth, Peru is a leader among emerging markets, with its success built on solid fundamentals and a framework of sensible policies. Singapore companies can benefit by supporting Peru’s economic development.
Peru’s relatively open and transparent investment regime, along with its broad network of Free Trade Agreements (FTAs), has endeared it to foreign investors. Since the liberalisation of the economy in the 1990s, foreign and local investors have received equal treatment under the law.
Ranked third in Latin America and the Caribbean for ease of doing business1, Peru offers investors an advantageous business environment in the region. Along with Chile and Mexico, Peru has also received an A-grade rating by Moody’s Investment Service.
Entering Peru’s market is even easier now that Singapore is an associate member of the Pacific Alliance. The trade bloc’s full members are Peru, Mexico, Colombia and Chile.
1: Ease of Doing Business Index, World Bank Group, 2017
The rising demand for public infrastructure has encouraged the Peruvian government to turn to public-private partnerships. Legal changes in 2014 have made PPPs less bureaucratic, more transparent, and thus more attractive to foreign investors.