Peru’s trade surplus of US$2 billion monthly supports a low dollar exchange rate and overall economic stability. With a 2024 GDP growth of 3.2%, the government aims to sustain this growth by attracting private investments and pursuing free trade agreements with various countries. Improved international reserves demonstrate the nation’s economic progress and capability for future expansion.
Peru currently enjoys a favorable trade surplus, reporting a monthly surplus of approximately US$2 billion which, according to Economic Minister Arista, contributes to maintaining a low exchange rate for the U.S. dollar. This stability is indicative of a robust economy, where various sectors actively seek to expand markets, improve agricultural outputs through irrigation projects, and enhance export capabilities. As of this week, the interbank exchange rate settled at S/3.778 per dollar, representing a modest annual variation of 1.18%, as recorded by the Central Reserve Bank (BCR).
In 2024, the government’s efforts to bolster macroeconomic indicators have resulted in a GDP growth rate of 3.2%, positioning Peru as a leader in growth across Latin America. Minister Arista emphasized the importance of sustaining this growth through increased private investment, more efficient public investment, and the expansion of foreign markets. He underscored the president’s commitment to encouraging the signing of additional free trade agreements to enhance Peru’s appeal to international investors.
Additionally, the government is negotiating agreements to prevent double taxation with several countries including France, the United Kingdom, Spain, and China. Peru is also exploring potential free trade agreements with nations such as India and Vietnam, aiming to recalibrate existing agreements to better serve its economic objectives. The Minister elucidated that Peru’s international reserves have significantly improved, rising from US$71 billion two years ago to US$82 billion currently.
The context for this discussion centers on Peru’s growing economy and the importance of its trade balance in maintaining a favorable exchange rate. A trade surplus occurs when a country’s exports exceed its imports, which can lead to increased currency stability. Minister Arista’s statements reflect the government’s strategic focus on improving macroeconomic health and attracting foreign investment, essential for sustainable growth in a competitive global market. The ongoing efforts to expand trade agreements are also pivotal for fostering economic relationships and enhancing the nation’s international standing.
In conclusion, Peru’s robust trade surplus is instrumental in maintaining a low dollar exchange rate, facilitating economic stability. The recent GDP growth underscores the country’s potential for future development, contingent on attracting private investments and diversifying markets. The government’s proactive measures in establishing trade agreements and boosting international reserves reveal a strategic commitment to sustaining economic growth and improving market competitiveness.
Original Source: andina.pe
