Message from Ambassadors

Peru: a country of opportunities
in Latin America
Harold Forsyth
Ambassador of the Republic of Peru to Japan
H.E. Mr. Harold Forsyth was appointed as Ambassador to Japan inApril 2017. He has been a vice minister of Foreign Affairs andAmbassador to Peru in Colombia, Italy, United States and China.
He also has been congressman (1995-2000) and founder of civil
association “Transparency”. He is a journalist and a diplomat.

Growing Economy
With an estimated population of 32.1 million, and rich
deposits of copper, gold, silver, lead, zinc, natural gas,petroleum and urea, Peru is a very diverse country due tothe climatic nature and cultural variation of its regions.

The country has had continuous economic and politicalstability since the early 1990’s. The Peruvian economy isexpected to have grown 124.6% between 2000 and 2016.
This growth was largely driven by prudent macroeconomic
policies, investor-friendly market policies and thegovernment’s intense trade liberalization strategies.

In recent years, Peru has achieved significant advances insocial and development indicators as well as inmacroeconomic performance, with very dynamic GDP
growth rates, reduction of external debt, a stable exchange
rate, inflation of 1.36% in 2017, which is even lower since2010, and it is within the Central Bank’s annual target
range of 1% to 3%.

In 2017, Peru kept its macroeconomic strength being theonly economy in the region that maintained its credit
rating stable (Standard & Poor’s, BBB+; Moody’s, A3;
Fitch, BBB+). In this way, the public and private sectors
can access lower interest rates and various sources offinancing to projects that close infrastructure gaps. Public
investment grows for the first time in four years and24

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private one grows after three years. PPP (Public PrivatePartnerships) projects awarded in 2017 were US$ 1.07
billion and the investment portfolio in 2018 is expected tobe US$ 4.51 billion in different areas as energy, health,natural gas, sanitation, IT, ports and railways. Recently, inlast February, Michiquillay copper project was awarded,project that requires an estimated US$ 2 billion investment.

Trade Agreement (FTA) in force since March 1st 2012.
We are also part of the Comprehensive and ProgressiveAgreement for Trans Pacific Partnership (CPTPP), andwe are currently negotiating a Convention for theelimination of double taxation and the prevention of taxevasion and avoidance. All of these are elements in benefitof a favorable environmental investment.

We also had a favorable external sector in 2017, withincreased external demand and high commodity prices
and with recovery and strengthening of non-traditional
exports. Peru’s exports in 2017 were US$ 44.2 billion,
the biggest rise in America (22%) and the third in theworld.

Challenges for 2018 and Beyond

Peru is the first world producer of zinc, lead, molybdenum,fishmeal and fish oil; second in copper, fourth in tin, sixthin coffee and eight in gold. Also we have strengthening ofseveral agro products exports between 2011 and 2017, forexample, quinoa (from 4th to 1st place), fresh avocados(from 5th to 2nd), blueberries (from 39th to 3rd), andfresh mangoes (from 5th to 3rd), among others, improved
their ranking. We continue to be the first world exporter offresh asparagus and maca; second in canned asparagus
and Brazil nuts; fifth in preserved olives, sixth in freshgrapes.

Peru – Japan Relations
This macroeconomic and commercial environment needs
to be taking into account for Japanese investors who plan
to invest in Peru. In addition to the traditional links
between Peru and Japan, there is a political commitmentof our Leaders to expand Japanese investment. The 2016
Joint Communique Abe-Kuczynski underlined theimportance of development the infrastructure sector in
Peru through Japanese firms.
Peru is a country that is growing, where the emerging
middle class demands services and goods and theeconomic environment has been recovery driven bydomestic demands and the gradual recovery ofconsumption. In that perspective and considering theretraction of Brazilian investment, the panorama seems
favorable for new actors in the investment and commercial
sectors in Peru.
Furthermore between our countries we had signed a Free

Certainly there are big challenges for 2018 and beyond:- Macroeconomic stability: consolidate and maintain it.
- Private investment: consolidate an environment of clear
rules to attract investment, especially diversifiedinvestment.
- Public investment: achieving growth targets ensuring
the quality of projects.
- Collection: improving revenues by promoting auditing
and digitization.
- Competitiveness: continue an active strategy that promotes
competitiveness.
In 2019 we will celebrate the 120th anniversary of thesystematic Japanese immigration to Peru. Approximately
100,000 Nikkei are living in Peru and 48,000 Peruvians inJapan, contributing to the welfare of our nations. On theother hand, 2021 will be a milestone in Peru. My country
will commemorate the Bicentennial of our Independence.
Let’s work together, trying with the support of Japanese
investment, build a new country more inclusive, with highstandards of education, health, in a democraticenvironment where everyone is proud to be descendent ofan ancient civilization but with the eyes focused on abetter future.
Official in charge of economic and investment matters:
Minister Counselor Mario Bustamante
Tel. 03-3409-7589
E-mail: mbustamante@embperujapan.org
Commercial Section of the Embassy of Peru:
Counselor Luis HelgueroTel. 03-5797-7745
E-mail: lhelguero@embperujapan.org※ JOI ウェブサイト（www.joi.or.jp/modules/member/）に本寄稿の日本語訳を掲載しております。
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