Peru’s ‘Look to Asia’ Strategy Pays Off

Peru’s ‘Look to Asia’ Strategy Pays Off

Peru is again on pace to end the year as one of the world's fastest-growing economies, due in no small measure to its ambitious strategy of economic diversification. In 2010, it finalized four new free-trade agreements (FTAs) -- three with Asian partners -- and launched the test phase of a joint stock exchange, Mercados Integrados Latinoamericanos (Integrated Latin American Markets, or MILA), with Colombia and Chile. Peru's global and regional trade diplomacy has resulted in more domestic investment and a larger network of export markets for Peruvian goods.

Peru's open-market policies can also be partially credited with the country's rapid recovery from the world economic crisis. Peru's economy is forecast to grow by 8.6 percent in 2010 -- a quick rebound to pre-crisis levels, which included 9.8 percent growth in 2008. In addition, Peru's capital, Lima, recently earned the distinction of being the third-fastest among 150 global metropolitan areas to recover from the crisis, trailing only Istanbul, Turkey, and Shenzhen, China.

The decreased vulnerability to international shocks through a diversified international market has been key to Peru's success.

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