Garcia sees Peru among world’s 5 high-growth countries in 2009

President Alan Garcia said on Friday that Peru is weathering the global financial crisis very well and will be one of the world’s top five countries to attain economic growth rates above 5% during 2009, along with China, Egypt, Qatar and India.

"I'm sure that Peru will be one of the world’s top five countries to grow above 5 percent this year, as it was announced by the International Monetary Fund,” said Garcia.

President Garcia also commented that Peru is successfully addressing the international economic crisis, noting that Peruvians have not reacted with pessimism like many other people in the world.

"I believe local entrepreneurs have not been affected by pessimism or fear, much less the government, every day we promote our policies to maintain and defend the country's production and employment," he added.

On Friday morning, the Peruvian leader inspected the construction of a housing complex in the Limean district of El Agustino. (Andina)

Peru hopes to sign trade deal with Japan by mid-2010, says Foreign minister

Peru expects to sign a Free Trade Agreement with Japan by the middle of 2010 if future negotiations develop without problems, said the Peruvian Foreign minister Jose A. García Belaunde, who is on official visit in Japan.

"Both countries have a strong political will for the conclusion (of a FTA), so I don’t see any important obstacle in our negotiations", he said.

In a five-day visit to Japan, which began last Friday, the Peruvian chancellor and his Japanese counterpart, Hirofumi Nakasone, agreed to initiate preliminary talks on the economic association agreement by the end of March.

In an interview with the Japanese agency Kyodo News, Belaunde did not rule out that both countries only hold one preliminary talks round before getting into big negotiations, which might conclude by the end the present year.

The Peruvian Foreign minister said it would be great to reach a final FTA agreement, between Peru and Japan, during the Summit of the Asia-Pacific Economic Cooperation Forum (APEC) to be held in Singapore next November.

Peru, one of the countries that registered one of the major economic growths in the world during 2008, stimulates a strong policy of trade opening and has signed in the last months trade deals with United States, Canada and Singapore, among other countries. (Andina)

Peru’s agro-exports overcome crisis while producers get ready for next season

The Peruvian agricultural exports are successfully recovering from the financial crisis affecting global markets, while producers are preparing for the next cropping season starting in June or July this year, the Ministry of Agriculture (Minag) reported Tuesday.

"Up to now, agricultural exports have not been significantly affected. The country is exporting large amounts of fruits (mango and grapes) and asparagus have successfully emerged from the most difficult period", said Peru’s minister of Agriculture, Carlos Leyton.

He explained the current agricultural campaign wasn’t that good, which is why agro-exporters are not only getting ready for the next season, but refocusing their attention on the planting of permanent crops such as avocado or grapes.

"Permanent crops require up to one and a half year work; however, they are sold in very interesting markets such as Europe, China or North America, which is a great opportunity to emerge from the crisis”, he said.

Leyton pointed out the global turbulence has not affected the confidence of entrepreneurs to invest in the country's agricultural sector. (Andina)

Peru leads Latin America’s growth projection for 2009-2010

Peru maintains the highest growth rate projection in the region for 2009-2010, according to estimates of national and international specialists presented in the last report of the consulting firm Consensus Forecasts.

According to February's results, Peru’s Gross Domestic Product (GDP) would grow 4.6 percent this year, a higher growth rate than other countries in the region, while in 2010, GDP is expected to grow 5.2 percent.

Panama ranks second on GDP's growth this year (2.3 percent), followed by Honduras (2.1 percent).

Brazil would register a growth of 1.1 percent, Colombia 1.4 percent, Chile 0.7 percent and Argentina 0.2 percent.

Even though Peru leads economic growth projections, the figures released on February showed a lower expectation than January's results that estimated a five percent growth .

In general, the economic growth projections for the countries in the region have tended to fall, so that the Latin American average growth rate for this year is 0.3 percent. (Andina)

peru, leads, latin, america’s, growth, projection, for, 2009, 2010
peru, leads, latin, america’s, growth, projection, for, 2009, 2010

President Garcia: Hundreds of companies to invest in Peru this year

Peruvian President Alan Garcia Perez said that hundreds of local and foreign companies will start investing in Peru this year, adding that it is up to the Andean country to maintain its first place in terms of regional economic growth.

“We must stay in first place, we need to bolster our self-esteem up and do not suffer from other countries’ mistakes (…) Hundreds of local and international companies will start investing in Peru this year”, he emphasized.

During the opening of a natural gas processing plant in the northern province of Talara, the Peruvian leader ruled out rumors about a potential shortage of energy resources.

He noted that Peru does not have “supply problems” because it has enough gas and oil reserves to carry out several development projects.

“The discovery of new hydrocarbon reserves must be a national priority beyond our differences,” he added.

The new gas processing plant was built by Peruvian oil company Graña y Montero Petrolera with a US$ 50 million investment. (Andina)

Photo: President Alan García Pérez attended the opening of a natural gas processing plant in Talara, Piura. Photo: Sepres.

president, garcia, hundreds, of, companies, to, invest, in, peru, this, year
president, garcia, hundreds, of, companies, to, invest, in, peru, this, year

Chilean daily hails Peru’s economic growth

Peru is one of the world’s five fastest growing countries in 2008 and has become the new economic jaguar of Latin America, says Chilean newspaper El Mercurio.

El Mercurio also notes that the ten consecutive years of Gross Domestic Product (GDP) growth have helped Peru become the fastest growing economy in Latin America during 2008.

"Its 9.84% growth has even exceeded that of China (9%)," highlights the Chilean newspaper.

In addition, El Mercurio recalled that last year Peru has been granted investment grade status by two international ratings agencies (Standard & Poor's and Fitch Ratings), and in 2007, it concluded its free trade deal with the U.S.

According to Moody's Economy analyst, Alfredo Coutino, Peru has made major efforts in the last decade toward improving its macroeconomic performance.

"Peru aimed to save a significant amount of resources from its commodity exports, while changes in the government's administration - which was usually a headache for the economy - gave a sense of continuity to government strategies," said Coutino.

Because of its economic and military strength, Chile is considered by many to be the "economic jaguar" of Latin America. However, Peru is also being regarded as a prosperous country thanks to its rising economic growth and investment stability. (Andina)

Photo: A panoramic view of Callao port facilities. Photo: Carlos Lezama

chilean, daily, hails, peru’s, economic, growth
chilean, daily, hails, peru’s, economic, growth

Peru economy grows 9.84 pct in 2008, its fastest pace since 1994

Peru's economy grew 9.84 percent in 2008, its biggest gain in 14 years (in 1994 grew 12.80 percent), consolidating Peru's economic expansion for the tenth consecutive year, the National Institute of Statistics and Informatics (INEI) reported Monday.

In December 2008, Peru's Gross Domestic Product (GDP) rose 4.90 percent totaling 90 months of consecutive growth.

Construction was a bright spot in December, climbing 10.33 percent, and growing 16.46 percent in 2008. Mining was relatively weak in December, growing 3.41 percent, and rose 7.58 percent for the year.

This year, Peru's economy is expected to slow to about 5 percent as prices fall for its metals exports, which normally make up 60 percent of all exports. Credit growth is also slowing on the global financial crisis.

But the government has unveiled a stimulus package to boost public investment at a time when capital spending by businesses is slipping.

The jobless rate in metropolitan Lima, which is used as a proxy for the country, rose to 8.8 percent in the last three months through January, from 8.1 percent in the same period last year. (Andina)

peru, economy, grows, 9, 84, pct, in, 2008, its, fastest, pace, since, 1994
peru, economy, grows, 9, 84, pct, in, 2008, its, fastest, pace, since, 1994

Peruvian film wins Golden Bear award at Berlin Festival

The Peruvian film “The Milk of Sorrow" (or La Teta Asustada in Spanish) won Saturday the top Golden Bear award at the Berlin International Film Festival, one of the world's leading film festivals.

This is the second feature film of the Barcelona-based Peruvian director, Claudia Llosa.

The Spanish-Peruvian co-production centres on a young woman, Fausta, (Magaly Solier), who suffers from a strange condition called teta asustada (“frightened breast”), which is carried in the breast milk of women who were raped during the struggle against terrorist groups in Peru.

Yesterday, International critics and media at this festival also awarded a Fipresci Prize to the “The Milk of Sorrow”.

Claudia Llosa, is the youngest film director who has ever competed at the Berlin Film Festival. (Andina)

Photo: Peruvian-born director Claudia Llosa and actress Magali Solier in Berlin

peruvian, film, wins, golden, bear, award, at, berlin, festival
peruvian, film, wins, golden, bear, award, at, berlin, festival

Chinalco, Rio Tinto form strategic alliance worth US$19.5bn

Multinational resource company Rio Tinto is forming a strategic alliance with Chinese aluminum and copper producer Chinalco which will provide the company with US$19.5bn in cash through convertible bonds and JVs, Rio Tinto said in a statement.

With the transaction, Rio Tinto said it will be able to pay off US$10bn of its net debt this year and will benefit from US$12.3bn in JV investments by Chinalco in aluminum, copper and iron ore.

Along with the deal Rio Tinto aims to raise US$7.2bn through convertible bonds in two separate tranches, Business News Americas reported.

Rio Tinto saw its 2008 net income cut in half to US$3.68bn compared to the year before. In its yearly results report, the company said it is mainly focused on paying off debt at present.

On an operational level, the company said it does not plan to make changes to its main asset in Latin America, a 30% stake in Chile's Escondida, the world's largest copper mine.

"With respect to the Chinalco announcement, we do not expect it to have any implications at Escondida, other than that Chinalco is buying 49.75% of our 30%. [Chinalco] will be an additional party at Escondida," Rio Tinto spokesperson for the US and South America, Tony Schaffer, told BNamericas.

After recently selling its iron ore and potash assets in South America to Brazilian giant Vale (NYSE: RIO) for US$1.6bn, Rio Tinto's only other main property on the continent is the La Granja copper project in Peru, which is on hold pending the improvement of market conditions. (Andina)

chinalco, rio, tinto, form, strategic, alliance, worth, us, 19, 5bn
chinalco, rio, tinto, form, strategic, alliance, worth, us, 19, 5bn

Food and construction industries to dynamize Peruvian economy in 2009

The Peruvian food and construction industries will dynamize the national economy, and will make possible that Peru achieves a growth of five or six percent in 2009, a difficult year due to the global financial crisis, Peru’s minister of Production Elena Conterno reported Wednesday.

“To date, the most dynamic sectors that will continue growing throughout the year are the food industry and construction materials”, she said.

She highlighted that the construction materials market will be increased significantly thanks to the execution of public road and electricity works, but also in housing development projects.

“As a result, this will also bring a greater dynamism in the wood market due to the increase in furnishings and door and window frames demand, among other products”, she added.

She said that, since world’s stock markets plummeted last October and November, the economic turbulence worsened and the private sector has been showing a great prudence; however, the industrial production continues very dynamic.

“We want to grow between five and six percent this year and the government is taking measures to guarantee it to Peruvians. Furthermore, we must be proud because Peru is one of the countries that will grow more due to its strong economy”, she said. (Andina)

Photo: Peru's minister of Production, Elena Conterno. Photo:ANDINA/ Victor Palomino Gómez

food, and, construction, industries, to, dynamize, peruvian, economy, in, 2009
food, and, construction, industries, to, dynamize, peruvian, economy, in, 2009

USAID to support Peru with technical and legal training for FTA

The United States Agency for International Development (USAID) will support Peru in the development of capacities for the recent implemented Free Trade Agreement (FTA) between both countries, USAID mission director, Paul Weisenfeld, said.

He said the support will consist of providing technical and legal training in the health, education, environment, and labor sectors.

“There is a commitment of both countries to implement the agreement in two essentials aspects: labor rights and environment conservation”, he said.

The US official indicated that, in coordination with the Labor ministry, a project to train work inspectors is developed.

“We are working to launch an automatic system that responds efficiently to detect the cases of violation of labor rights”, he said.

In regard to the environment topic, he said that is important to assume the compromise of conservation and preservation of natural resources.

Weisenfeld said that in 2008, USAID had a budget of about 55 million dollars to execute diverse country’s projects and, at present, he did not know if this item will be increased or diminished this year. (Andina)

Photo: Mission director of USAID. Paul Welsenfeld. Photo.ANDINA / Norman Córdova

usaid, to, support, peru, with, technical, and, legal, training, for, fta
usaid, to, support, peru, with, technical, and, legal, training, for, fta

Peru's traditional exports rose 8.5% to $23.61 billion in 2008

Peru's traditional exports reached US$ 23.61 billion in 2008, which represents an 8.5 percent growth compared to 2007, reported Peru's Trade and Tourism Promotion Board (PromPerú).

This growth was mainly by falling prices of mining products in the third quarter of last year.

In December 2008, the value of exports was reduced by 40.7 percent, reaching US$ 1.32 billion.

Mining products totaled US$ 18.3 billion, increasing 4.9 percent last year, most of these products were copper exports (7.66 billion with a 6.2% rise), and gold exports(5.57 billion - 33% increase).

At the beginning of 2008, copper prices in the international market was US$ 3.2 per pound, and fell up to US$ 1.4 at the end of 2008.

Gold prices experienced a minor reduction, dropping from US$ 890.9 per Troy ounce to US$ 820.5 in the same period.

Oil exports and its derivatives totaled US$ 2.8 billion, which represents 22.7 percent more than last year, due to higher sales to the United States (33.9 percent) and Canada (217.3 percent).

PromPeru said that shipments in December 2008 totaled US$ 100.2 million, which represents a fall of 63.2 percent due to lower international oil prices. (Andina)

peru, s, traditional, exports, rose, 8, 5, to, 23, 61, billion, in, 2008
peru, s, traditional, exports, rose, 8, 5, to, 23, 61, billion, in, 2008

First textile-product container departs for US within the frame of FTA

This morning, the first Peruvian container with textile products departed from the port of Callao for United States, within the frame of the Free Trade Agreement signed between both countries.

The event was chaired by the Peruvian minister of Foreign Trade and Tourism, Mercedes Aráoz.

This trade agreement came into force the last February 1.

Andina

Photo: Peru's minister of Foreign Trade and Tourism, Mercedes Araoz, attended departure ceremony of the 1st Textile-Product Container for US. Photo: ANDINA / Alberto Orbegoso

first, textile, product, container, departs, for, us, within, the, frame, of, fta
first, textile, product, container, departs, for, us, within, the, frame, of, fta