Peru Freight Transport Report Q1 2015

Business Monitor International
December 31, 2014
59 Pages - SKU: BMI5432411
Countries covered: Peru

Peru Freight Transport Report Q1 2015

BMI maintains its broadly positive view on Peru's freight transport sector. External headwinds stemmingfrom lower metals prices associated with weak Chinese demand have intensified in Peru in recent quarters,and we expect this to continue to weigh on economic growth in the coming years. We now project real GDPgrowth of 4.0% in 2015, compared with our previous projections of 5.0%. However, significant mineralwealth, attractive investment opportunities at the sector level, and an improving consumer story underpinour view that Peru will remain one of the most dynamic economies in Latin America in the coming years.Further upside risk comes from the recently announced plan to heavily invest in Peru's transport network,which BMI believes will help boost the country's freight transport volumes, through providing easier routesto market. However, we caution that perhaps the plan is overly ambitious, and might not quite hit thedesired target by the scheduled date. According to Peru's transport and communications minister, CarlosParedes RodrĂ­gues, USD22bn is set to be invested in the Latin American country's transport andcommunications sectors by 2016.



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