Red hot for 2011
The performance of the manufacturing sector in 2010 was one of the most promising. According to numbers by Peru’s statistics agency, INEI, with October’s growth of 14.66%, an upward growth rate for 10 months of 2010 was attained. While figures for the last two months of the year are not yet compiled, Javier Dávila, who heads economic studies of the National Society of Industries, afirms that the sector will finish 2010 up 14% compared to the previous year. Why? Mostly because of growing internal demand, which is a consequence of better salaries and encourages greater consumption.
It should be highlighted that manufacturing contributes almost 16% of Peru’s GDP. For Dávila, the sector’s performance is also explained by the reactivation of the construction and metallurgical industries, both tied to mining.
Record commercial loans
During 2010 the financial system experienced growth in line with the expanision of the economy, families’ greater purchasing power and improvements in banks. Expansion of credit continued at the expected rate, projectet at 24% growth for the year, approximately tripling that of GDP growth.
According to Peru’s banking association, Asbanc, loans reached $3.8 billion in the month of November, a new record for the country’s private banking system. Furthermore, the strengthening of the Peruvian Nuevo Sol was apparent, as loans and saving are conducted more and more in the national currency, as opposed to dollars.
Related: See Peru business news
Growth of new consumer classes
The commercial sector has settled in with 9.46% growth up to October, sparked by dynamism in car sales and repair, as well as high demand for construction material, electrodomestic products, food and clothing.
According to the Lima Chamber of Commerce, better access to credit by commercial banks and the expansion of supermarkets and stores into cities outside of Lima also contributed to this growth. This has also fomented a new consumer profile: more demanding and sophisticated, according to Kantar Worldpanel. The consulting company highlights the more purchases of personal beauty products among males. This is turn has motivated companies to expand their offer of products and services.
5. Electricity and Water
|Demand from new agricultural projects made water and electricity a growth industry in 2010. (Photo: LaMula.pe)|
Although only contributing 1.9% to the country’s GDP, electrical and water utilities have contributed an important role in its expansion. With 7.43% growth in the January-October period, electriciy and water occupy sixth place in the sectors that most spurred the national economy. Electricity grew 8.5% in the first 10 months of 2010 compared to the previous year.
César Butrón, president of the economic association Coes-Sinac, explains that the growth is due to greater demand from small consumers and new agroindustrial projects, as well as the construction of new commercial centers.
6. Tourism and restaurants
|The Sausal was opened this year, Casa Andina’s new luxury hotel in Chincha.|
It was a year that could have been in the red for the hotel sector due to fewer tourists from those countries still hurting from the economic crisis. But in the end, tourism finished with positive results due to a sophisticated domestic strategy and a bump in corporate travel, whose executives are traveling the Peru in search of new business. According to the Society of Hotels in Peru, domestic luxury travel in 2010 experienced significant growth due to the population’s greater purchasing power, now ready to spend up to $1,500 a day during trips.
In the case of restaurants, it’s old news that 2010 was the year of the explosion of Peruvian cuisine, with fairs like Mistura and restaurant openings for all income levels.
Related: Read about new restaurants in Lima.