Avenida Jose Larco N° 1301, Torre Parque Mar, Piso 22, Miraflores, Lima-PERÚ
ECONOMIC REPORT N PERU - UK
PROPOSED BY JONATHAN WEYGER
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1
INVESMENT FROM UK TO PERU 2018 In 2018, the United Kingdom was the second most important source of foreign direct investment in Peru, with US $ 4,364 million.
*Source: ProInversion
The UK`s investment represents 17% of the total amount of foreign direct investment in Peru. The amount invested by the UK was allocated to the following sectors: Mining sector
54%
Finance
17%
Communications 7%
Source: ProInversion - Estadísticas de Inversión Extranjera
CURRENCY EXCHANGE RATE (PEN - GBP)
In graphic one we can observe the exchange rate between Peru (soles) and the UK (sterling pounds). The monetary exchange value as of 16 December was PEN 4.48 (equivalent to 1 British pound). Additionally, the highest value recorded in 2019 was PEN 4.55 on 31 July and the lowest was PEN 4.01 on 12 December.
Source:Â Currency data provided by Morningstar
EXPORT (FOB USD) PERU TO THE UK
The UK economy slowed down from 2018 to 2019 due to Brexit related uncertainty . During 2018, business investment declined, consumption was constrained by slow real income growth, and public debt remained stagnant (above 87% of GDP).
IMPORT (FOB USD) PERU FROM THE UK We can observe an increase in import value but at a slower growth rate. This is due to the aforementioned Brexit uncertainty. However, the commercial relationship between Peru and the Uk should continue based on the signed trade agreement between the UK and the Andean Countries (May 15,2018)
Source: Euromonitor International from International Monetary Fund (IMF), Direction of Trade Statistics. Santander Trade Markets - ECONOMIC AND POLITICAL OUTLINE.
EXPORT RANKING 2018 (FOB USD)
Raw gold, gold in other forms
US$ 180,108,884.18
Avocado (paltas), fresh or dry
US$ 65,371,062.22
Liquefied natural gas
US$ 57,966,175.28
Redcurrant, mirtilos and other fruits of US$ 56,678,184.69 the vaccinium genus, fresh
Fresh Grapes
Asparagus, fresh or refrigerated
US$ 53,977,257.08
US$ 42,616,049.73
Source: Comisión de Promoción del Perú para la Exportación y el Turismo - PROMPERU
TOURISM FROM THE UK TO PERU 2018
In 2018, Peru received approximately 74 124 arrivals from the UK. The total generated expenses from British tourists in Peru was US$146,6 MM
BRITISH TOURIST PROFILE:
The average stay is 10 nights
Average spending per tourist US$ 1128
51% of them prefer 3 star hotels
18% come from London
Source: PROMPERU - Cifras Turisticas
EDUCATION Regarding education, British influence in Peruvian education involves the use of books imported from the UK. In the following graphic we can observe the amount of books imported from the UK to Peru in the last 3 years.
BOOKS' IMPORT (FOB USD) FROM THE UK TO PERU
Source: SUNAT
DOING BUSINESS These data are provided by the World Bank Group Flagship Report, whose main purpose is to compare business regulation for domestic firms in 190 economies around the globe.
These scores are from the “Ease of doing business ranking”, where the UK ranked 7th from 2017 to 2018 and 8th in 2019. Peru ranked 64th, 58th, and 76th in 2017, 2018, and 2019 respectively.
The scoring criteria is described in the following chart
Source: Doing Business database.
PREMIUM PLUS MEMBERS
PREMIUM MEMBERS
Diciembre 2019 Web: www.bpcc.org.pe E-mails: bpcc@bpcc.org.pe laguirre@bpcc.org.pe Note: We appreciate the support of the UK Embassy staff