1. 1

2. 2

3. 3

4. 4 Peru’s success story is based on the continuity of sound economic policies LA5: Economic Growth 2002-2014 (2002=100) Source: IMF WEO April 2015, MEF Peru`s GDP (equivalent to USD$ 218 billion in 2015 has increased at an average rate of over 6 percent each year and is now three times our 1995 GDP; Public debt is decreasing (19.3% of GDP); International net reserves represent 32% of our GDP; Unemployment is around 6%; Inflation (3.2% in 2015) & country risk are also amongst the lowest in the region. Latin America: Sovereigns Rating 1 (Long Term Debt in Foreign Currency)

5. 5 A leading economy with three basic guidelines: Sound macro- economic policies Protection of the Environment “Include in order to grow” Education Infrastructure Diversification

6. 6 Peru´s potential & advantages allow our country to be optimistic… a)… 32 million people a “melting pot” full of creativity and entrepreneurship. b)… 15% of his mining potential exploited. c)… 25 million out of a total of 106 million of hectares of available forests. d)… 3.3 GW of its 70 GW hydroelectric power. e)… mega-biodiversity almost completely exploited. f)… developing other value added industries & services opportunities g)… strategic location of our territory as a “hub” in South America. h)… strong macroeconomic fundamentals are strong i)… a huge gap in infrastructure of around USD$ 121 billion which offers incomparable and attractive opportunities for foreign investment.

7. 7 Peru: main challenges on the economic side… Improve productivity & competitiviness Industrialization/ Diversification Reduce infrastruture gap Improve education quality Develop science technology & innovation Alleviate inefficient government bureaucracy Eliminate restrictive labor regulations Promote access to financing

8. 8 Economic growth + a socially inclusive approach have underpinned increases in adequate employment, lower poverty levels and expanded middle class…  Extreme poverty reduction has fallen to 4.3% almost one sixth of what it was in 1991;  Chronic infant malnutrition has descended to 10.7%;  Alphabetization of young population is almost 100%;  Equal primary education attendance levels between boys and girls has been reached;  Reduction of infant mortality is 17%; and,  Income inequality has also been tackled as Peru´s Gini index (0.44) is below MEX/COL/CHI/BRA levels.

9. 9 Peru´s modern and efficient social inclusión programs… … pre-natal medical care. … food program for most vulnerable sector of young students in rural areas. … non-contributive pension fund for elderly population above 65 years old confronting poverty or extreme poverty. … cash subsidies specifically oriented to most vulnerable sectors in exchange of the fulfillment of certain obligations. … employment programs and labor reconversion. … finance university or technical education to less favorable young students. … improve early childhood development children 1-3 years old.

10. 10 Peruvian integration in the international scenario…

11. 11 Peru´s aspiration to be part of the OECD by 2021 is a strategic national objetive to escape the middle income trap… Transport infrastructure & logistics Education & skills Governance & trust in institutions Labor market reform Innovation

12. 12 Peru: Global Integration via a wide net of Regional Trade Agreements (Free Trade Agreements)

13. 13 Peru & the European Union: FTA put Peru on the radar but still with a lot of potential to be exploited… Clear signs of our common will to continue moving forward towards a “Strategic Partnership”:  Increased political cooperation (Security issues & peace keeping operations led by EU);  Triangular cooperation & technical assistance in favor of institutional reforms;  Fight against drugs and international organized crime; ST&I, climate change, education and migration; and,  EU Member States´ support to Visa Exemption (Schengen) to Peruvians & support to Peruvian aspiration to the OECD in 2021.  The Trade Agreement with the European Union (2013) became a “turning point” of our bilateral relations with the EU and its Member States.  Economic and trade assets but mostly a positive political impact.

14. 14 European countries are a key partner for pour non traditional exports… Trade balance Peru-European Union (UE-28), 2010- 2014 & January-March 2015 (In US$ Millons) 2007 (In millons OF USD/%) 2014 (In millons OF USD/%) TRADITIONAL5,696 (81%)4,034 (63%) NON TRADIC.1,304 (19%)2,348 (37%) Evolution of non traditional Peruvian exports to the EU 2007-2014 (In US$ Millons)

15. 15 Peru & the Pacific Alliance: A strategic perspective Additionally, by 2012, they were able to obtain US$70 billion in Direct Foreign Investment (DFI). All members have eliminated visas between them They established the Latin American Stock Market known as MILA the largest market in Latin America and the second largest. They have agreed to liberalize at least 90% common custom duty tariffs upon the Agreement coming into force. PA represent 34% of Latin America's GDP and 2.7% of the global GDP. It is the ninth largest economy in the world. Trade represents 35.8% of Latin America and the Caribbean.

16. 16 Latin American integration & worlwide  Peru actively participates in different integration processes at the political level within the framework of the Community of Latin American and Caribbean States (CELAC) and the Union of South American Nations (UNASUR).  The Andean Community is our natural sub regional group (focus of attention has turned to sectorial policies regarding health, education, labor, and infrastructure and border development)  Peru´s relations with the Southern Cone Common Market (MERCOSUR) provide a space for dialogue and exchange of good practices.  Pacific Rim (APEC, ASEAN).  Arab Nations (ASPA).  African South America Forum Summit (ASA).

17. 17 What Peru has to offer? A reliable political partner in the region to promote business in democracy, and respect for the law and other shared values and respect for the environment. What does Peru need? More investment. More trade: (diversified exports).