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Tags: peru | economy

Reports of Peru’s Economic Demise are Greatly Exaggerated

By    |   Thursday, 09 September 2010 08:00 AM EDT

The one thing I really enjoy about traveling is seeing things with your own eyes.
 
We can hear or read about growth levels, but we don’t realize how often this is fiction or the government’s invention. 
 
In the last quarter, Peru reported 11.9 percent GDP growth quarter-over-quarter. Year-over-year, the growth was 9 percent. These are almost China-boom type levels.


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Peru is benefiting from an increasingly stable political system, an influx of capital from other Latin American nations, and a boom in the mining industry. 
 
You can see the difference on the street. When I left the airport in Lima in 2006 before getting into a taxi, I looked around. Lima’s streets were dirty, the buildings were not in the best shape and it looked like the typical stereotype of a dirty Latin American city.
 
However, you can now see the difference. The city is much more developed and modern.
 
The last time I was here, I stayed at the Hotel Miraflores, near the Pacific Ocean. This time, I could barely find the hotel as I walked around because the area around it has been built up so much. Even the “rougher” areas of the city don’t look that bad.
 
This is what’s so fascinating about visiting Peru: You can see just how overhyped U.S. reports of credit contraction and downtown troubles really are.
 
There are very few signs of a slowdown in Peru. Things are booming and doing well. We must remember that the global economy is not just the United States. 
 
In Peru, there are more traffic jams because there are so many cars being added to the roads every day that the government cannot keep up.
 
What we must remember about Latin America is that it is small in terms of population. Including Mexico and Central America, the population of Latin America is only 569 million people.
 
However, it is rich in resources, such as gold, oil, silver, copper, and other metals. In the future, I see Latin America being the resource pipeline to Asia.
 
As long as countries like Peru can fight the temptation to slip back into socialism and statism, the economic boom should continue and the standard of living should increase.

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DavidSkarica
The one thing I really enjoy about traveling is seeing things with your own eyes. We can hear or read about growth levels, but we don t realize how often this is fiction or the government s invention. In the last quarter, Peru reported 11.9 percent GDP growth...
peru,economy
375
2010-00-09
Thursday, 09 September 2010 08:00 AM
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