Latin America: Velarde insists Peru will keep setting the pace
A dynamic economy is transforming the country. The central bank governor predicts good times ahead for a nation rich in resources and competitive in manufacturing.
Julio Velarde, president of Peru’s central bank, believes the country’s $40 billion of private pension funds will double in size during the next five years, helping capital markets to become even more dynamic. Peru’s economy has expanded at an annual average rate of 7.4% during the past five years, the fastest rate in Latin America. The central bank says it grew by 6.9% last year and forecasts 5.6% this year.
"Peru is being transformed," says Velarde. "The economy has grown so fast during the past five years every corner of the country is being impacted by the economic dynamism, not just the capital, Lima, but everywhere. The middle class has become much bigger during that period and it will continue to grow.
"A lot more people will buy pensions and other financial products in the future and that is why the pension funds industry will become much bigger. A bigger middle class also means much more domestic demand – it’s one of the main reasons why the economy has been expanding so fast."