Monday, January 18, 2016

Peru bullish about growth prospects in 2016

Late last week, Peru released its GDP growth statistics for the month of November 2015, showing that its economy grew by a healthy 3.96%. Peru Central Bank official Adrian Armas told the Andina News Agency that this strong performance bodes well for Peru’s prospects for growth heading into 2016. Amras explained that the optimism is due to the incredible growth in Peru’s mining sector, which is expected to drive the country’s GDP growth in 2016. A number of projects, which only just started in late 2015, should grow their production into 2016.

In mining-related news, El Comercio spoke with Juan La Rosa, the director of the Cerros de Amotape National Park in Peru, located along Peru’s border with Ecuador. La Rosa noted that illegal miners have recently been discovered on the Ecuadorian side of the border, and he worries that they could cross over into Peru and start mining in the protected park area. El Comercio noted that just a few weeks ago, Peruvian officials detained a group of Peruvians and Ecuadorians who had been mining illegally within the Park’s buffer area.  


In oil-related news, La República reported on Canadian oil company Pacific Exploration & Production’s ongoing financial difficulties. Pacific, the lead operator of Peru’s important Lote 192, announced that it will not be able to pay $66.2 million in interest payments on time. This set off a steep fall in Pacific’s share price, which was already trading at historic lows. Pacific added that it will use its 30-day grace period to try to renegotiate with its creditors in an attempt to weather the global oil crisis set off by the total collapse in global oil prices.

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