Peru to lead economic growth in Latin America through 2015, says IMF

Peru will continue to lead economic growth in Latin America at least until 2015, driven by good policies being implemented by the government and that should be improved by the next administration, said the International Monetary Fund (IMF).

Peru will undoubtedly continue to be the fastest growing, or one of the fastest growing countries, in Latin America according to the IMF’s World Economic Outlook through 2015.

"It is not politically incorrect to say that the Peruvian authorities are wisely managing a set of first-generation reforms, and thus have a stronger economic policy," said Nicolas Eyzaguirre, Director of the IMF's Western Hemisphere Department.

In addition, he praised Peru’s decision to open up its market, sign Free Trade Agreements (FTAs) with other countries, use its huge natural resources potential and improve its infrastructure.

"The $10,000 increase in Peru's per capita income is only seen in countries where first-generation reforms are implemented, and Peru is on this path," Eyzaguirre commented on statements by IMF Managing Director Dominique Strauss-Kahn, who projected that Peru will double its Gross Domestic Product (GDP) per capita in less than ten years if it maintains economic growth levels around 6% and 7%.

IMF: Peru goes through virtuous circle of economic growth

International Monetary Fund (IMF) Managing Director, Dominique Strauss-Kahn said Thursday that Peru is in a virtuous circle of economic growth and quality of life improvement.

He indicated that the goal of every country is to create a virtuous circle, where economic growth allows the implementation of greater investments and, in turn, a better quality of life of citizens.

"This eventually causes real growth to be possible, and Peru is placed in this kind of circle and will continue like this if current economic policies remain the same," he pointed out after meeting with President Alan Garcia at the Government Palace.

Strauss-Kahn highlighted the significant reduction in poverty rates the country has achieved so far and urged to maintain the economic policy at least the next five years.

"When I check Peru’s figures, I realize that the number of people who are now below the poverty line has been much lower, meaning that reduction has been significant," stated the IMF managing director.

If Peru managed to maintain this level of growth and the same economic policies at least during the next three, four or five years, I'm sure the face of the country will change significantly, he said.

Peru, Honduras sign important cooperation agreements

In an effort to strengthen and boost bilateral relations, the governments of Peru and Honduras on Wednesday afternoon signed a series of bilateral cooperation agreements in a ceremony held at the Government Palace in Lima.

Peruvian President Alan Garcia and his Honduran counterpart Porfirio Lobo witnessed the signing of cooperation agreements relating to drug trafficking and money laundering.

Among the documents signed is an agreement on cooperation in production, use prevention, rehabilitation and control of illicit trafficking in drugs and psychotropic substances and related crimes.

Also, an agreement on cooperation for the prevention and suppression of money laundering arising from any unlawful activity and an agreement on cooperation in documentation and historic archives within the framework of the Latin American Diplomatic Archives Network.

Peruvian Foreign Minister Jose Antonio Garcia Belaunde and Honduran Foreign Minister Mario Canahuati signed the agreements.

Presidents Alan Garcia and Porfirio Lobo attended the ceremony held at the Government Palace’s Golden Hall.

Huaca de la Luna hosts its “one million” visitor since opening

Huaca de la Luna, one of the most significant Moche ceremonial complexes located in Trujillo, La Libertad, hosted its “one million” visitor today, 15 years after its opening to tourism, said the manager of the archeological site Carmen Castillo.

The “one million” visitor is an Ecuadorian named Mario Rivadeneyra who was in Trujillo for visiting the ruin and the attractions.

The Ecuadorian visited the ruins with a group of Peruvian friends, approximately at 11:00 hours.

“For me, it is an honor that my arrival has coincidently been the one million. It is admirable the work made here. This demonstrates great patience and commitment,” Rebadeneyra expressed.

The project directors explained that the visits have been registered since 1995 and that 70% of the 1million visits are national and the rest belongs to international visits.

La Huaca de luna ruin is located in the district of Trujillo of Moche and its build began 1,500 years ago.

Peru authorized President Garcia’s trip to the United States

Peru officially endorsed a legislative resolution passed by the Congress authorizing President Garcia’s trip to the United States to meet with his US counterpart, Barack Obama.

According to the legal document published today in El Peruano official gazette, the Peruvian president will be out of the country starting from May 31 to June 3.

Peruvian President Alan Garcia Perez will visit the United States at the invitation of his U.S. counterpart Barack Obama, with whom he will discuss global and bilateral issues.

This meeting will set the platform for further strengthening the cooperation between the two countries by developing a common agenda.

“The invitation shows the harmonious and important agenda shared by the two countries,” the presidential press office reported.

“During the meeting, the presidents will discuss a range of bilateral, hemispheric and global issues,” it added.

Garcia Perez will also meet with members of the Parliament, representatives of the Executive Branch and U.S. business leaders, Peruvian Ambassador to the United States Luis Valdivieso said.

US, European Union, Japan main markets of Peruvian biotrade products

Peruvian biotrade products are mainly exported to United States, European Union and Japan, Foreign Trade Vice Minister Eduardo Ferreyros reported Friday.

In 2009, Peru's bio exports totaled US$ 87 million, including tara plant, cochineal insect, Brazil nut, sacha inchi (Inca-peanut), camu camu and yacon.

Vice Minister Ferreyros said that Peru is one of the places with greatest megadiversity in the planet.

“Such biodiversity has a great value, these highly demanded products can be produced in a sustainable way to become a key toll to preserve the environment, increase exports and reduce poverty," he stated.

Biotrade products are highly significant as global trends are focused on the search of healthy and nutritious food, he concluded.

Banks increase Peru economic forecasts to 6% or more

A robust expansion in Peru's gross domestic product in March is leading some banks to increase growth estimates for the full year to 6% or more.

Rising levels of private-sector investments are propelling the economy, economists say.

Peru's GDP expanded by close to 8.8% in March, the strongest monthly growth in 17 months, the government said, adding that the economy likely increased by about 6% in the first quarter.

While some of that strength in March was due to the statistical effect of weak growth in the same month last year, economists say the trend of stronger growth is clear, according to a Dow Jones Newswires article published at The Wall Street Journal.

"Taking into account the above-consensus first quarter performance, the strong carry-over effect for second quarter growth, supportive monetary and fiscal stimulus still in place and J.P. Morgan's positive outlook for the global recovery, we have revised up our full 2010 GDP growth forecast to 6.5% (from 6.0%)," J.P. Morgan economist Julio Callegari said in a report.

Credit Suisse, meanwhile, increased its full-year growth forecast to 6% from its previous forecast of 4.5%.

"We expect the economy to continue to grow at a strong pace in the coming quarters, which underpins our new projection for average growth in 2010," Credit Suisse economist Carola Sandy said in a research note Tuesday.

Peru's GDP expands 8.76% in March, highest in last 17 months

Peru's gross domestic product (GDP) grew 8.76 percent in March 2010, the eighth straight month of growth, the National Statistics Institute (INEI) announced Monday.

March’s GDP growth was the highest since October 2008, when the economy expanded by 8.87 percent.

According to the agency, Peru's economy grew 6.03 percent in the first quarter from a year earlier.

INEI reported that the construction sector expanded 24.14% in the third month of the year, while financial services expanded by 7.37%.

The manufacturing sector posted a gain of 15.10% in the month, while the fishing sector increased 0.50%. Activity in the agricultural sector increased 3.25%, while government services rose 0.55%.

The mining and hydrocarbons sector dropped 3.60%, while electricity and water increased 7.75%. The transportation and communications sector increased 4.03% while restaurants and hotels rose 5.36% in the month.

Peru's GDP expanded by about 1.0% last year, and many economists expect the economy to expand by over 5.0% this year.

President Garcia announces major gold deposit discovery in southern Peru

Peruvian President Alan Garcia announced Saturday the discovery of a major gold deposit in southern Peru and described it as excellent news for the nation's future, since it will generate higher incomes.

He explained that, according to the first studies, the deposit has a mineral resource estimate of 5.6 million gold equivalent ounces, although it could have even more.

The president indicated that US$ 750 million would be invested to start the extraction stage. This will not only generate thousands of jobs, but will also dynamize the economy in Moquegua as well as in Tacna and Puno.

The announcement was made at the Government Palace during a meeting held this morning with directors of mining companies Gold Fields and Minas Buenaventura.

The meeting was attended by Nicholas Holland, Gold Fields Limited president; Juan Luis Kruger, Gold Fields La Cima S.A vice president and general manager, Diego Ortega, Gold Fields La Cima S.A corporate affairs manager; and Alberto Benavides de la Quintana, Minas Buenaventura S.A.A. president.

Duran Ventures finds copper minerals on surface of Ichuna project in southern Peru

Duran Ventures Inc. reported it has just completed a second campaign of intensive mapping and sampling in its Ichuña Project, located in Moquegua, southern Peru, which shows abundant secondary copper minerals on surface, including malachite, azurite, and chalcocite.

"Reconnaissance sampling and mapping carried out in February of this year showed abundant secondary copper minerals on surface," the company said in a statement.

Surface samples ranged from weakly anomalous to as high as 10.2% copper, 259 grams silver per tonne, and 6.1% lead, and 1.2% zinc.

The Ichuña project covers 1,000 hectares and is located 120 kilometres northeast of Arequipa, in the department of Moquegua in southern Peru.

Duran Ventures also said it has the option to acquire Ichuña by acquiring all shares Double Jack Mines. Sampling results from this latest field campaign are expected shortly.

The Ichuña Project is located approximately three kilometers to the north-northeast of the Chucapaca project of Gold Fields Limited and Compañia de Minas Buenaventura.

In this sense, Duran Ventures said the exploration success of Gold Fields and Buenaventura at the Chucapaca Project highlights the mineral potential of this emerging mineral district.

Gold Fields and Buenaventura announced early this week a mineral resource estimate on the Canahuire Zone of 83.7 million tonnes of 1.9 grams of gold per tonne and 8.2 grams of silver per tonne, for an inferred resource of 5.6 million ounces of gold (calculated as a gold equivalent) within the project area.

Nick Holland (CEO of Gold Fields) and Roque Benavides (CEO of Buenaventura) said that Canahuire is a highly promising gold discovery in an emerging gold district in South America.

Duran Ventures is a Canadian exploration company focused on the exploration and development of porphyry copper, precious metal, and polymetallic deposits in Peru. (Andina)

Perupetro launches bid for 25 oil concessions demanding US$ 1.25 billion investment

Perupetro presented to investors 25 oil and gas blocks to be awarded this year, which are located in the jungle and will demand an initial investment of 1.25 billion dollars by companies.

"This concession process started in November 2009 making consultations with communitites and population", Perupetro President Daniel Saba said.

This follows reglamentary procedures that establish the need to make public consultations.

Communities can be assured that none of the blocks intended to tender won’t be given preferential treatment over national parks, historical sanctuaries, already established reserves or proposed reserves for indigenous groups living in isolation.

He also said social baseline studies have been undertaken in each block. These studies will be handed over to companies that are eligible to participate in the selection process.

Blocks included in the bid are: 165, 166, 167, 168, 177, 178, 179, 181, 183, 185, 186 y 187, located in the Marañon Basin; the blocks 169, 171, 173, 174, 175, 176, 188 y 189, located in the Ucayali Basin; and the blocks 180, 182 and 184 located in the Huallaga Basin.

Others included are Block 172 located in Santiago Basin (Cajamarca – Amazonas - Loreto) and the XXVIII Block in the Sechura Basin (Piura - Lambayeque). (Andina)

Peru silver production rises 30% in 2005-09 due to sector investments

Silver production in Peru has considerably increased between 2005 and 2009 when compared to the previous five-year period, primarily as a result of higher investment in the country's mining sector, Peru's National Mining, Petroleum and Energy Society (SNMPE) said Wednesday.

Jose Miguel Morales, chairman of SNMPE's Gold Committee, explained that the silver output rose 30% from 13,000 MT in the 2000-2004 period to over 17,000 between 2005 and 2009.

Morales added that the country's silver production reached 3,854 MT in 2009 and 862 MT in the first quarter of 2010.

According to the SNMPE official, this strong growth was largely due to rising investment in the sector, which attracted nearly $8.5 billion of private investment during the 2005-09 period.

Peru has become the world’s biggest producer of silver as it accounts for 18 percent (3,854 MT) of the global silver mine production (21,400 MT).

Morales said that the Ninth International Gold Symposium, to be held in Lima from May 18 to 20, will include a panel discussion entitled “Silver Projects in the World” with the participation of major domestic and foreign mining companies. (Andina)

Honduras president to visit Peru this month

Honduras’ Foreign Minister Mario Canahuati announced that President Porfirio Lobo Sosa will travel to Colombia and Peru to hold talks with his counterparts Alvaro Uribe and Alan Garcia on May 24 and 26, respectively.

According to Canahuati, Lobo and Garcia will meet to share information about social programs implemented by the Peruvian government to benefit the most disadvantaged sectors.

The presidential visit to Peru will provide an opportunity to learn from its society, whose living conditions have improved over the past years.

According to El Tiempo daily, President Lobo will acknowledge the support provided by the Colombian government so far.

Uribe took office in late January, two days later Lobo Sosa did the same in Honduras, amid international condemnation of the coup that deposed President Zelaya in June 2009. (Andina)

Peru's Pisco Boom

The day the investment banker socializing at a random bar in New York orders a Pisco Sour as nonchalantly as he would a Margarita or say, an Apple Martini, will be the day Carlos Ferreyros and other promoters of Peru’s pisco, a brandy-like liquor distilled from grapes, can say their mission is accomplished.

Though there is still much ground to tread before pisco—the base of Peru’s iconic cocktail, the Pisco Sour, and other mixed drinks—can compete head to head with popular spirits like rum or vodka, pisco producers in Peru have already taken important steps to enter the U.S. liquor market at full force with this novel product, according to Ferreyros, co-owner and manager of Bodega San Isidro SAC, Peru’s top pisco exporter in 2009.

“After years of promoting pisco in the United States and elsewhere, it is finally being recognized as an exotic, high quality spirit,” says Ferreryros, who in the United States sells his flagship product under the brand BarSol Pisco. BarSol USA LLC is the brand owner and marketing company of BarSol, managed by Diego Loret de Mola, who is in charge of promoting BarSol in the United States.

Peru pisco exports have grown an impressive 215 percent over the past six years. (Latin Business Chronicle)

Reopening Machu Picchu attracts British summer travelers

The ancient Inca citadel of Machu Picchu, which reopened on April 1 to visitors after being closed since late January due to heavy rainfall and mudslides, has become an accessible and attractive option for British tourists on summer holidays this year.

According to Skyscanner, Machu Pichu is among top five tourist destinations worldwide that are welcoming back visitors after suffering from a fall in tourism due to various incidents, ranging from epidemics to natural disasters.

In January 2010, massive flooding in the mountains surrounding Machu Picchu trapped 4000 tourists and led to the closure of the ancient Inca site. Searches on Skyscanner for flights to Peru plummeted by 57% after the flooding.

Following two months of closure, the "Lost City of the Incas" is now welcoming visitors again and searches for Peru flights have since returned to their pre-flood levels.

Skyscanner, a flight search engine that allows users to browse for flights via price and location, reported that besides Machu Picchu, the other former disaster stricken destinations are Mexico, Sarajevo in Bosnia & Herzegovina, Greece and Kashmir. (Andina)

IMF managing director to meet Finance Ministers from the Americas in Lima in May

The International Monetary Fund (IMF) announced today that Managing Director Dominique Strauss-Kahn will meet Finance Ministers from the Americas in Lima on May 28 for the “Third Meeting of Finance Ministers of the Americas and Caribbean.”

Strauss-Kahn will travel to Brazil and Peru from May 25-28 to meet with government leaders, leading figures from the private sector, and with students and academics as part of efforts to engage more closely with stakeholders in the region.

In Sao Paulo on May 25, Strauss-Kahn will take part in a televised panel debate with leaders from the business community about global economic prospects, the changing post-crisis global economy and its implications for the region, and Brazil’s evolving role in international policy-making.

He will also visit a research institute and meet with senior officials in Brasilia on May 26.

In Peru on May 27, the IMF Managing Director will engage in a discussion with academics and students from several countries at a Town Hall Meeting in Lima, then join a televised round-table discussion with Ministers of Finance from the region on the global economic policy agenda, multilateralism, and the role of Latin America and the IMF.

“Latin America is a region brimming with energy and promise," Strauss-Khan said.

He added that in this post-crisis world, Brazil, Peru and the other emerging economies in the region are well positioned to build on their recent strong macroeconomic track record, and to engage prominently in the global economic policy debate.

"This visit will present an opportunity for key players to share their insights on the challenges and opportunities facing the world. This region can and must help shape the global policy agenda, including on IMF reforms," he said.

The visit will also underscore the IMF’s commitment to serving as a global partner for Latin America. (Andina)

New Dimension Resources obtains gold values at Cenepa gold project in Peru

New Dimension Resources is pleased to report that sampling by Minera NDR Peru during an initial reconnaissance program of the Cenepa property has returned anomalous gold values from stream sediment samples.

The Cenepa gold property, located within the Cordillera del Condor mineral belt in northern Peru and adjacent to the Kinross Gold Corp. Condor Project that encompasses the Fruta del Norte gold deposit in Ecuador, covers a very attractive geologic terrain which the Company believes is highly permissive for the discovery of precious metal mineralization.

"I am extremely pleased by these positive results from our first program at Cenepa," said Fred Hewett, President & CEO of New Dimension.

"A great deal of work needs to be done to evaluate the potential of the property, but these results are a promising first step in a very exciting geological belt."

Stream Sediment and Rock Chip Sampling

A geological reconnaissance team consisting of two geologists and five local prospectors visited the project in late March and collected 12 stream sediment and three rock samples to test for evidence of mineralization.

The samples were collected along four principle drainages found within the southeastern portion of the Cenepa concessions.

The results from the stream sediment samples outline a moderate gold anomaly that could suggest a possible east-west orientation to potential mineralization through this portion of the Cenepa concessions.

Seven of the samples returned values from 14 - 19 ppb gold with three samples greater than 35 ppb gold (CNS-5, 6 and 11) reporting values ranging from 37 - 59 ppb gold. The strongest anomalous values were obtained from two parallel drainages (#3 and #4) spaced approximately 1 kilometre apart. (Andina)

Peru offers wide variety of medicinal natural products

Peruvians should be proud of their country's rich variety of medicinal natural products which have been used since ancient times, Peruvian Deputy Environment Minister Rosario Gomez said Friday.

Rosario Gómez, who invited people to visit a traditional medicine exhibition at the ministry’s headquarters, stressed the importance of recognizing the significant contribution of native communities in passing their knowledge and expertise on to others.

“Traditional knowledge is the wisdom of towns and communities. With the natural products and thanks to traditional knowledge, we use them to prevent diseases and take care of our health,” she stated.

Starting at 16:30 hours, the Ministry of Environment will open its doors to the public for the Casa Abierta event, where local experts will talk about ancient medicinal practices from an alternative medicine point of view. (Andina)

Tommy Hilfiger’s interest in Peruvian cotton attracts global attention

US fashion brand Tommy Hilfiger’s announcement that it is keen to use Peruvian organic cotton in the manufacturing of their clothes has called global media attention.

Susan Irvine, Director of Quality Assurance and Corporate Social Responsibility at Tommy Hilfiger Europe, unveiled the company’s interest in Peru’s cotton as part of its environmental protection policy.

Global media such as the CNN Expansion (Spain), La Tercera (Chile), Prensa Gráfica (El Salvador), Terra, and the Center of Latin American Studies (Cesla) highlighted the use of this Peruvian raw material.

Several North American media such as Alto Nivel (Mexico) and US media added to the list, among them Noticias ABC and the Denver Post and other newspapers from Florida.

Organic cotton is grown without the use of fertilizers and meets all the requirements of European environmental legislation.

Irvine made this announcement to Andina at the fashion fair Peru Moda held April 28-30 at the Real Felipe Fortress in Callao. It’s an event that seeks to showcase Peru's supply of textiles, clothing, footwear, accessories, jewelry, gifts and decoration.

According to the Organic Exchange international organization during the 2007-2008 agricultural campaign nine associations of Peruvian farmers grew 2,066 hectares of organic cotton to be exported to Europe and US.

Organically raised cotton is gradually winning over new ground both on the farm and in the marketplace. No toxins or synthetic fertilizers are used. Organic cotton is produced without the use of harsh chemical bleaches or dyes, and is allergy free. (Andina)

Foreign entrepreneurs send missions to Peru to expand business lines

Entrepreneurs from Colombia, Brazil and Ecuador sent more trade missions to Peru to expand their business lines because of the numerous investment incentives offered by the country, Peru's Private Investment Promotion Agency (ProInversion) reported.

"Visits of Latin American and Asian entrepreneurs to explore investment opportunities have increased in recent years," Proinversion executive director Jorge Leon said.

He said Colombian entrepreneurs operate in various sectors, especially in agro-industry, seeking to expand its production portfolio in Peru.

"They already produce some goods but are interested in expanding their production lines and taking full advantage of Free Trade Agreements (FTAs) Peru has signed, and those planned for the near future," he told Andina news agency.

Grapes -which are harvested in different seasons in the two countries- are one of the most attractive products. If someone produces grapes in several countries, then he would sell it all year round, he added. (Andina)

Peru partners with other countries to seduce China at Expo Shanghai 2010

Peru organizes joint activities with Colombia, Brazil and United States at Shanghai World Exposition, in order to promote themselves better and attract capital and tourists.

Those four countries decided to name the square in which their pavilions are as Cristobal Colon and organize joint activities.

The general director of Colombia’s pavilion, Juan Pablo Cavelier, says that China is entering the markets around the world and “we definitely think that Latin America should be the next one.”

He indicated that each country has its potentialities to compete for the “crown” of the Chinese investment.

Peru is part of the Latin American countries that aim to seduce the Asian giant during the mentioned exposition.

Other countries such as Nicaragua, Panama, Honduras, Cuba and Venezuela are also present. (Andina)