Peru’s trade surplus, with a monthly average of US$2 billion, supports a stable U.S. dollar, contributing to lower prices for consumers. Minister Arista highlighted economic growth and the importance of attracting foreign investments. The government is prioritizing the expansion of free trade agreements to further enhance the trade balance and encourage private investments, which is essential for long-term economic stability.
Peru’s trade balance exhibits a significant annual surplus, exemplified by a monthly surplus of approximately US$2 billion. This positive financial position contributes to a favorable exchange rate for the U.S. dollar. Minister Arista remarked, “Today, I gladly see the price of chicken falling. Why? Because we have a stable dollar.” The stability of the currency is attributed to the orderly operation of various sectors striving for market expansion, increased exports, and enhanced agricultural production.
As of recent data from the Central Reserve Bank, the interbank exchange rate stands at S/3.778 per dollar, reflecting a modest variation of 1.18% over the past year. Minister Arista emphasized the determination to improve macroeconomic indicators after a setback encountered in 2023, referencing a projected GDP growth of 3.2% for 2024. He stressed the importance of sustained growth through increased private investment and enhanced public efficiency.
Efforts to forge new free trade agreements are being prioritized to bolster Peru’s trade image. The Minister underscored ongoing agreements with countries to prevent double taxation, including France, the United Kingdom, Spain, and China. Notably, discussions to expand trade agreements with nations such as India and Vietnam are underway. The government aims to highlight Peru’s potential to attract private investment, vital for continued growth. Furthermore, it was noted that Peru’s international reserves have increased from US$71 billion two years ago to US$82 billion currently.
The economic context of Peru’s trade surplus has played a pivotal role in maintaining a low dollar exchange rate, enhancing the nation’s competitive market position. With consistent monthly surpluses significantly impacting the local economy, the government’s focus on developing agricultural sectors and export markets is indicative of a strategic approach to national growth. The ongoing efforts to nurture bilateral trade relations through free trade agreements further align with Peru’s macroeconomic objectives, particularly in light of recent challenges faced in 2023.
In conclusion, Peru’s commendable trade surplus not only facilitates a stable exchange rate but also positions the nation well for sustained economic growth. The government’s commitment to improving macroeconomic indicators, attracting private investment, and expanding trade agreements underscores its strategy to enhance economic resilience. With increasing international reserves, Peru is poised to leverage its trade advantages to foster continued growth in the upcoming years.
Original Source: andina.pe
