► Peru oil production to hit 100,000 barrels a day by 2023

Peru's oil production is expected to hit 100,000 barrels a day by 2023, taking into account the recovery of the industry in the last year, Energy and Mines Minister Juan Carlos Liu projected on Friday.

► Mining investment to continue increasing in 2020

► PERU Central Bank keeps benchmark interest rate at 2.25%

"Oil production has recovered (…) our goal is to reach a production of 100,000 barrels a day by 2023," he told El Peruano official gazette.

"A few days ago, we spotted a figure that has not been seen for several years, achieving a production of 63,000 barrels per day, but the average is 53,000 barrels a day," he added.

► Peru's 2019 inflation within  target range

In this line, Liu commented that the search for this hydrocarbon resource in new areas —such as Block Z-64, located off the coast of Tumbes— is expected to increase the production.

"A ship will arrive to carry out the first deep-sea drilling activities, respecting the environment and using the highest security measures, of course, in an attempt to prospect and locate reserves in an area that had not been explored before," he explained.

"The ship will report the results of such drilling within 30 days," the government official added.

► PERU Non Traditional exports up 7.6% in Nov 2019 

In addition, he noted the presence of British Petroleum (BP), the sixth-largest oil producer in the world, which came to Peru to carry out technical explorations.

"It will carry out explorations using non-invasive techniques for prospecting hydrocarbons in the continental shelf zone, trying to increase our reserves in such area," the minister explained.

PERU Central Bank keeps benchmark interest rate at 2.25%

(ANDINA) The Board of Directors of the Central Reserve Bank of Peru (BCR) decided to maintain the reference at 2.25% expecting year-on-year inflation to be around 2% over the forecast horizon, with a moderate downside bias due to the possibility of a lower-than-expected increase in domestic demand.

►Peruvian Blueberry exports break record in Nov 2019

Likewise, the financial entity indicated that inflation was 0.21% in December. Consequently, year-on-year inflation remained at 1.9% in December 2019, while monthly inflation excluding food and energy stood at 0.34% in December, so the year-on-year figure also remained at 2.3%. 

On the other hand, BCR pointed out that the one-year ahead expected inflation remained at 2.2% last December.

► Peru's 2019 inflation within  target range

According to the issuing entity, the weak performance of primary industries and General Government investment in 2019 was attenuated by the activity in non-primary industries.

"Business condition expectations as of December remained stable with respect to November, while economic activity indicators point to a gradual closure of the output gap," Peru's Central Reserve Bank stressed.

► PERU Non Traditional exports up 7.6% in Nov 2019 

Furthermore, it underlined that global growth risks from trade tensions have attenuated, although the impact of the recent geopolitical events on international energy prices is still uncertain.

The BCR Board affirmed that it pays close attention to new information on inflation and its determinants in assessing future changes in the monetary policy stance.

At the same session, the Board also decided to maintain the interest rates on BCR off-auction credit and deposit operations in domestic currency with financial entities.

► PERU Country risk at 107 basis points

It arranged: overnight deposits of 1% per year, as well as direct security/currency repo and rediscount operations: i) 2.80% per year for financial entities' first 10 operations over the last 12 months; and ii) the rate fixed by the BCR Monetary and Foreign Exchange Operations Committee for operations other than financial entities' first 10 operations over the last 12 months. It also decided that Dollar swaps should have a fee equal to a minimum annual effective cost of 2.80%.

► Peru exports to Canada total US$2.321 billion in Jan-Nov 2019, 153%

Finally, the BCR Board's next monetary policy session will take place on February 13, 2020.

► Peruvian Blueberry exports break record in Nov 2019

(Andina) Peruvian fresh blueberry exports broke records in November 2019, becoming the product with the second-largest shipments by totaling US$733 million and expanding 64% over the same period in 2018, the Association of Peruvian Farming Producers (AGAP) reported on Friday.

► Peru's 2019 inflation within  target range

This place was previously occupied by grapes.

AGAP affirmed that Peruvian Hass avocados still led the list with shipments worth US$743 million (+2.8%), not to mention the outstanding performance of grapes (US$599 million; +28%), and citrus fruits (US$205 million; +3%).

► PERU Non Traditional exports up 7.6% in Nov 2019

As for mango and organic banana exports, both products posted a slight decrease with shipments of US$201 million and US$140 million, respectively.

Peru's fresh fruit subsector grew 17.3%, thus reaching US$2.739 billion, while the vegetable subsector registered an increase of 12.57%, amounting to US$475 million.

► PERU Country risk at 107 basis points

Within this framework, asparagus stood out (US$349 million; +8%), followed by onions (US$76 million; +30%), peas (US$30 million; +28%), and garlic (US$14 million; +41%).

The main destination markets —for both subsectors— were North America (US$1.384 billion), Europe (US$1.298 billion), and Asia (US$339 million).

Likewise, coffee shipments amounted to US$548 million (-9%) and those of cocoa reached US$269 million (+12%).

► Peru exports to Canada total US$2.321 billion in Jan-Nov 2019, 153%

As at November 2019, the agriculture sector grew 7% totaling US$6.130 billion, and remained the country's second-most important exporting sector.

► Peru's 2019 inflation within target range

(Andina) Peru's annual inflation rate was 0.2% in December and 1.9% in the year 2019, within the Central Reserve Bank's target range (1-3%), the issuing entity has reported.

► PERU Non Traditional exports up 7.6% in Nov 2019 

In December 2019, the price rises with the highest contribution to inflation were observed in urban fares (1.1%), national transportation (24.1%), chicken meat (1.9%), and tangerines (9.7%).

On the other hand, the price decreases —which showed the greatest negative contributions to inflation— were those of fish (-2.6%) and fresh fruits (-3.8%).

► PERU Country risk at 107 basis points

Furthermore, inflation —excluding food and energy— showed a monthly rate of 0.34% as a result of the evolution of goods (0.03%) and services (0.52%), registering a variation of 2.3% in 2019.

Inflation expectations within target range

Economic agents' inflation expectations for 2020 and for 2021 remain within the target range of 1–3%, according to the BCR Survey on Macroeconomic Expectations conducted in December 2019.

► Peru exports to Canada total US$2.321 billion in Jan-Nov 2019, 153%

Inflation expectations for this year are between 2.2% and 2.4%, while the inflation rates expected for 2021 remain between 2.3% and 2.5%.

► PERU Non-traditional exports up 7.6% in Nov 2019

(Andina) Peru's non-traditional exports reached US$1.224 billion in November 2019, a 7.6% expansion over the same period in 2018, the Central Reserve Bank (BCR) has reported.

► Peru exports to Canada total US$2.321 billion in Jan-Nov 2019, up 153%

"This growth was explained by higher shipped volumes (6.6%) —mainly of farming, fishery, and iron-steel products— and due to increased average prices," the entity underlined.

Thus, non-traditional product sales abroad totaled US$12.403 billion between January and November 2019, which represented a growth of 3.5% compared to the similar period in 2018.

► Peru country risk at 107 basis points

Likewise, the issuing entity pointed out that —in the first eleven months of 2019— the increased sales of avocados (+2.6%), blueberries (+53.6%), grapes (+10.1%), frozen giant squid (+54.1%), and asparagus (+3%), among other products, were registered.

Peru's non-traditional exports value registered a rise of 4.4% in the last 12-month period that ended in November 2019. Compared with other Latin American countries, it meant the highest growth among the main countries in the region.

► Mining investment to continue increasing in 2020 

► Peruvian Country risk at 107 basis points

(Andina) In the week of December 31-January 8, Peru's country risk indicator —measured by the EMBIG Peru spread— remained at 107 bps, the Central Reserve Bank has reported.

► Mining investment to continue increasing in 2020

However, in the same period, the EMBIG LatinAmerica spread rose 3 bps to 349 bps within a context of geopolitical tensions between the United States and Iran.

Interbank interest rate

On January 8, the interbank interest rate in Peruvian Soles showed an annual rate of 2.25% and this rate in U.S. Dollars registered 1.75%.

On the same date, the 90-day corporate prime rate —the interest rate charged by commercial banks to lower risk businesses— in Soles was 3.29%, while the prime rate in Dollars recorded 2.69%.

► Peru exports to Canada total US$2.321 billion in Jan-Nov 2019, up 153%

Moreover, the interest rate on mortgage loans in Soles stood at 7.9% percent, whereas this rate on loans in Dollars was 6.9%.

► Peru exports to Canada total US$2.321 billion in Jan-Nov 2019, up 153%

(Andina)
Peruvian exports to Canada reached US$2.321 billion between January and November 2019, up 153% compared to the same period a year earlier, the Association of Peruvian Exporters' Global Business and Economy Research Center (Cien-Adex) has reported.

Cien-Adex noted that sales to Canada saw strong growth, while overall exports fell 4.3% in the first 11 months of 2019.

According to the center, this outcome was driven by increased demand for gold. Such mineral expanded 345%.

However, there are remarkable cases such as the aviation fuel (887%), jewelry (104%), strawberries (95%), and grapes (29%) to mention some products with a significant dollar FOB value.

Cien-Adex Director Carlos Gonzalez recommends a careful study of these cases because they may provide evidence about the factors required to strengthen the product diversification strategy, which could be applied to generate a new exports shock that revives the country's economy.

"Growth is remarkable. In the search of new destinations by entrepreneurs, Canada casts interesting lights that result in a series of products with great potential and possibilities," he said.

Gonzalez explained that a long list of new items is seen in the North American nation.

For example, 331 items were recorded worth less than US$1,000 between January and November 2019. They included rugs, drills, clothing items, shampoo, cochineal carmine, blankets, wine, among others.

Gonzalez said that the investment in the mining sector is one of the main drivers of growth in exports to Canada, as well as the strategic alliances with foreign companies, which help refine and ship aviation fuels.

► Peruvian Mining investment to reach US$12.800 billion in 2020-2021

Antapaccay mine pite Lake

Peru's Energy and Mines Ministry (MEM) on Thursday projected the country will receive mining investments worth US$6.300 billion in 2020 and US$6.500 billion in 2021.

Thus, the upward trend —registered since 2017— will remain in place.

Deputy Minister of Mines Augusto Cauti informed that mining investment is close to reaching US$6.000 billion in 2019, thus ending the year with a growth rate of almost 25%.

"This year, we are growing at about 25% in mining sector investments compared to last year. We will reach three consecutive years of expansion, which is not a minor figure considering the global situation," he expressed.

Steady increase

It should be noted mining investment totaled US$3.928 billion in 2017, which meant a growth of 17.8% over 2016.

In 2018, mining investment amounted to US$4.947 billion, thus representing an expansion of 25.9% compared to 2017.

"This improvement is not only important for this sector, but also for the country since mining is one of the driving forces behind the country's growth and the population's development," the deputy minister underlined.

► Light vehicle sales up 40.65% in Dec 2019

Sales of light vehicles —including cars, open-bed trucks, pickups, vans, station wagons, SUVs, and off-road vehicles— amounted to 14,397 units in December 2019, up 40.65% compared to the same month in 2018, the Automotive Association of Peru (AAP) reported on Tuesday.

Moreover, the December result is the best monthly growth since July 2012.

December sales resulted in a total of 151,997 sold light vehicles in 2019, a 2.42% increase over 2018, when sales declined by 9.32%.

"A result that puts the sector in the positive path and helps renew the vehicle fleet that is 13 years old on average," AAP highlighted.

The association stated that the recovery in sales of new vehicles in 2019 began to take shape in the middle of the year, when the rate of evolution turned upward after dropping consecutively for several months.

AAP explained that one of the important factors that influenced the positive behavior was the reduction of selective excise taxes on a certain vehicle segment.

Likewise, an improved performance of various economic indicators was observed during the second half of the year.🚗🚗

Peruvian Agro-exports total US$6.232 billion in Jan-Nov 2019

(Andina) 
Peruvian agricultural exports (traditional and non-traditional) totaled US$6.232 billion between January and November 2019, an 8.7% expansion over the same period in 2018, the Association of Peruvian Exporters (Adex) has informed.

This result was due to higher shipments of avocados, blueberries, grapes, and asparagus to international markets.

It should be noted that the aforementioned rate is lower than the one registered in January-November 2018 (12.2%) and January-November 2014 (22%), when coffee boosted the supply of traditional goods.

Likewise, products such as avocados, grapes, preserved asparagus, quinoa, mangoes, cacao beans, evaporated milk, and preparations used in animal feeding boosted the supply of value-added products.

Traditional agro-exports (US$672 million) went up 1.8% after posting declines of 5% and 9% in January-November of

2017 and 2018 respectively.  

The main export markets were the United States (+22.1%) and Germany (-6.7%), among others, such as Belgium, Colombia, Sweden, and Canada.

► Peru remains second largest producer of copper, silver and zinc worldwide

Peru remained the second largest producer of copper, silver, and zinc in the world in 2018, Peru's Energy and Mines Ministry has reported.

According to a ministerial press release, the Inca country was the third producer of lead in 2018, stood fourth in the production of tin and molybdenum, and sixth in output of gold.

In addition, Peru ranked second in production of copper at 2.44 million fine metric tons, which accounts for 11.8% of the world's total.

On the other hand, the Andean nation produced 1.47 million fine metric tons of zinc, making up 11.6% of the total production worldwide.

As for silver, the country had a production of 4,163 fine metric tons, placing it second in the globe and representing 15.5% of the world production.

It must be noted Peru has the largest silver reserves in the world, amounting to 110,000 fine metric tons, which accounts for 19.6% of the total.

The country's lead production totaled 289,195 fine metric tons, ranking third in the world. 

Additionally, Peru was the world's sixth-largest producer of gold with 142.6 fine metric tons produced in 2018, making up 4.4% of the global production.

Peru maintained its position as the country with the third-largest reserves of copper, zinc and molybdenum, and climbed two spots to fifth place in the case of gold.

► Peru added-value exports to Canada grew 12.2% in August 2018

Peru added-value exports to Canada amounted to nearly US$116 million between January and August this year, up 12.2% from the same period in 2017, Peruvian Exporters Association (Adex) informed.

Agro-industrial products (US$65.586 billion) accounted for 58% of the total, followed by those of garment (16%), fishery (12%), and iron-steel (4%) sectors. 

Tangerines, quinoa, mangoes, cotton t-shirts, frozen trout fillets, shrimp tails, and blueberries stood out among the most demanded goods by the North American country.

Diversification

Nevertheless, the agro-industrial industry constitutes only 58% of Peru's added-value shipments. Therefore, Adex stressed the need to keep on working to diversify the Inca nation's exportable supply.

To that end, Adex is implementing the TFO Canada 'Ready-to-Export' project aimed at strengthening the textile-garment chain.

According to Adex Project and International Cooperation Manager, Luis Barreto, the initiative seeks to promote trade with Canada by getting textile-garment small and medium scale enterprises involved.