Lima, Peru offers unparalleled cuisine, stunning warm weather, historic sights and friendly people that make for a comfortable and pleasant trip. However, the true measure of a visit is to further bolster our opinion of the exciting investment climate in Peru. In specific, my charge was to take a critical East Coast eye to these pleasant climates to verify safety of principal, as well as political and economic stability.
Returns in the Peruvian commercial real estate sector are growing for some time now, but as we grow some of our larger investors necessary clarification. To that end, organization principals met with quite a few officials from the Peruvian government, attorneys, developers and analysts. In certain, we interviewed Mr. Daniel Kerner, an analyst from the Eurasia Group, a New York based, global political risk research and consulting firm.
Mr. Kerner was extremely forthright when he described Peru as “1 of the finest managed economies in Latin America”. This has been proven by steady growth since 1999 and a growing budgetary surplus of over billion US dollars. In addition, foreign investment continues to improve on a year to year basis, escalating to over billion USD in 2007. Due to the fact of these and other elements, Mr. Kerner believes Peru is well positioned to manage the global economic crisis.
A combination of 1 of the most stable currency exchange rates in the region as well as low and steady inflation pressure for over a decade has helped bolster the Peruvian currency. In 2008, Peru achieved investment grade status from Fitch ratings, Regular and Poors and Dominion Bond Rating Service. Peruvian debt is presently rated BBB- by S&P. This enables Peru to support 1 of the lowest risks to investment in all of Latin America.
The political climate, notoriously volatile in South America, has been especially tranquil in Peru. Analysts feel that the next numerous years will continue with a stable peaceful government committed to growth and international investment. Mr. Kerner stressed that Peruvian demand for populism is low and that the economy is on a firm pathway to an very marketplace stable environment.
Peru represents an exciting combination of political, economic stability that translates in any language to one of the best investment opportunities in commercial real estate in the world today.
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