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Peru one of the world抯 top-ten agro-producing nationsWednesday, June 15, 2016 > 10:22:40
The great variety of products cultivated in Peru has placed the country as one of the world’s 10 largest agricultural producers according to the "Doing Business and investing in Peru 2016" report issued by PwC.
In this sense, PwC stressed "good performance" by the country’s agro-industrial sector.
"Roughly every 5 years, the value of Peru’s agricultural exports has doubled, growing at a rate of approximately 17% annually," it highlighted.
The report projected "by the end of 2016 it will reach US$7 billion as a result of new products and more irrigated land."
"On the other hand, the effects of the El Niño phenomenon are not expected to affect the sector's growth [...]," estimated "to exceed 2.5%, mainly due to the recovery of important crops such as coffee and the expansion of the livestock."
The manufacturing sector is also one of Peru’s economic foundations.
"In the last 5 years, manufacturing represented, on average, 15% of GDP, 16% of exports and 18% of tax income," it reads.
Additionally, the sector has benefitted from trade liberalization “through free trade agreements, increasing competitiveness and specialization in sectors, in which Peru has a competitive advantage.”
Also, non-traditional manufactured products account for 24% of total exports.
In spite of a deceleration in line with the international economic situation, with a decline of 3.7% in its manufacturing GDP in 2014, the Peruvian manufacturing sector presents many opportunities for growth in the coming years.
International demand for manufactured goods is expected to rebound led by the United States. Increased investment is projected to follow a public-private concession program, and manufacturing is expected to get a boost from government's recently launched Productive Diversification Plan.