Peru beats average growth of APEC economies

Peru is the Latin American country with the highest average growth rate of the economies that make up the APEC group.

Between 2001 and 2023, the country's GDP expanded at an average rate of 4.1%, compared to 3.3% for Chile and 1.5% for Mexico. Average growth also outpaced the average of all other APEC economies combined, which reached 3.8%.

The APEC group comprises Australia, Brunei Darussalam, Canada, South Korea, Chile, China, the US, the Philippines, Hong Kong, Indonesia, Japan, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, Russia, Singapore, Taiwan, Thailand and Vietnam.

The figures were provided by the president of Peru's central bank, Julio Velarde, who participated in a panel at the APEC CEO Summit currently taking place in Lima.

According to Velarde, part of the growth is explained by Peru's laws and the constitution, which is open to foreign direct investment from any country.

“The constitution is protective of investment and property rights, and we cannot discriminate between local and foreign companies. By law, every citizen can have their money in any currency, and we cannot implement capital controls,” said Velarde.

Another growth pillar has been low inflation, which reached 2.01% in the 12 months through October. According to the central bank, Peru has maintained single-digit inflation since February 1997, the longest period for any Latin American country.

“If we look at our history, we have suffered a lot from hyperinflation, and as a society we have learned that we need responsible monetary policies,” Velarde added.

The central bank projects Peru to grow 3.1% in 2024 and 3.0% in 2025. Last year, the country's economy contracted 0.6%.