The roar of the Inca has been reverberating since the start of the new millennium. Peru's economy has surged: annual per capita GDP leapt from $1,970 in 2000 to an amazing $6,120 in 2015, according to World Bank data.
Along the way, the country posted annual growth rates of up to 9.8 % (in 2008), and not a few people are branding the country as "the Asian tiger of South America" in light of this economic and social transformation.
The recent triumph of Pedro Pablo Kuczynski in the presidential race puts a widely known economist with global connections at the center of power and places Peru on the threshold of one of the most exciting crossroads of its recent history: will the country succeed in implementing the reforms that would make it possible to finish transforming the nation into an economy of the first order?
The Peruvian business community is holding its breath.
In this context, Latin Trade offers an overview of the significant milestones and the pending challenges that lie ahead for the country's leading economic sectors.
During the past 20 years, an unprecedented boom in agricultural exports has flourished and the sector has become one of the main drivers of employment and development. An example of this is the southern coastal department of lea, a leading agricultural region that boasts of having an unemployment rate of zero percent.
"The takeoff of the agricultural sector in Peru is due to a mixture of things," says Angel Manero, managing director of agribusiness in the Ministry of Agriculture. "To start with, a new availability of land."
In the 1990s, laws were passed making it easier to buy land. The agricultural frontier was also expanded through infrastructure projects that improved access to water, including massive irrigation systems of the Chavimochic and Olmos projects on the north coast and in the Villacuri zone of Ica.
"Peru discovered that by planting in the coastal region, the economy could be more competitive: grapes, pepper, avocadoes, asparagus and other crops were cultivated, and these are very successful products today," Manero told Latin Trade. Then, this process expanded. "The country began to fill the empty spaces and to produce sizable volumes for export," he adds.
In 2006, the sector benefited from an important break; the ATPDEA, the agreement for promoting trade between the United States and Peru, took effect and allowed the entry of more Peruvian products into the US market.
With all these...