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Influencing

Factors of

PERUPresented By:

Chad Hendriks

Elchin Karimov

Rutger Vanlee

Shan Mahmood

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CULTURE Republic of Peru

Population 29,8 Mil.

Official language

Spanish Cultural groups

Amerindians (Quechua and Aymara)

Europeans Africans

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Time approach is relax and flexible delays are

quite common is referred to: la hora

Pernuana Relationships: familiy is important and above

business needs, first informal introduction of

potential business partners Religion plays an important role in daily life

90% Catholic

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Doing Business

Working hours 8.00 16.00 mo-sa

Lunches are important for business, meetings

should be scheduled one month in advance

Organisations are hierachical

Masuline domination

Business and private lifes are combined Informal

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ECONOMY Peru is an emerging country, market-oriented

economy characterized by a high level of foreigntrade

Peru is one of the world fastest growing economies

The economy of Peru is classified as upper middleincome by the World Bank

GDP= $176.9 billion (2011), GDP/Cap. 6,018(2011) GDP Growth= 6.8% (2011), Inflation= 3.3% (2011)

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The three types of economic activities

Primary A very important argicultural

nation because of the different climate zones

Secondairy Peru had developed a medium

manufacturing sector

Tertiary Tourism has represented a growth

in Peru since the early 1990s

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Economic performance

The economic growth is driven by export,

which provide a strong currency which

finances import and external debt payments

In nominal terms the export was growing from

14.8% of GDP in 1999 to 28,7% of GDP in 2011

Main trading partners: USA, China, European

Union

Main trading products: Gold, copper and zinc.

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Economic recommendation

To maintain stable growth in the future Peru

needs more and better public infrastructure

and social services, particulary for those living

in poverty.

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LEGAL The Peruvian government seeks to attract

investment both foreign and domestic .

From 1991 through September

2005, privatization revenues totaled $9.4

billion.

Neither prior approval required nor does it

require foreign investors to register their

investments.

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Foreign investors have the same rights as nationalinvestors to benefit from anyinvestment incentives, such as tax exemptions.

Registration is required in order to obtainthat they will be able to repatriate capital, profits,and royalties.

Some industries requires Peruvians to ownmajority of share.

No investment within 50 km of internationalborders.

Reforms in business start-up procedure.Improved ranking in World Banks business start-up ranking.

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The freedom to hold and dispose of foreign

currency. No restrictions on remittances of

profits, dividends, royalties and capital. Exporters and importers are not required to

channel foreign exchange transactions

through the Central Reserve Bank of Peru and

can conduct transactions freely on the open

market.

Anyone may open and maintain foreign

currency accounts in Peruvian commercial

banks.

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De-dollarize the economy.

US dollar accounted for for 44.5% of loans and

41.4% of deposits in 2011, from for 82 percentof loans and 73 percent of deposits in 2001.

The foreign exchange market operates mostly

freely. Peru offers both foreign and national investors

legal and tax stability agreements to stimulate

private investment. And long term benefits.

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Credit is allocated on market terms and the

banking industry and Foreign investors are

increasingly making use of the local marketconditions by obtaining credit and floating

bonds.

In 2006, granted 30 years concession to DubaiPorts.

In 2011, granted 25 years concession to Swiss-

Spanish-Peruvian firm.

In 2011, granted 30 years concession to

Argentine-Peruvian firm.

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Political Still high risk of corruption

Poverty and inequality 35% below poverty line

High bureacracy at low levels of government

Resource nationalism

Threat of tax increase in mining sector

Social protest

United states-Peru trade promotion agreements

in 2006

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Heaviliy dependance on Exports commodity:

Metal, gold, copper, silver, oil and gas.

Investment in infrastructure, sanitation and

water connections

Still weak infrastructure

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