Why this is important to Wisconsin businesses: Free-market policies will enable Wisconsin businesses to enter the market and invest in key sectors.
The growth agenda of Peru’s newly elected president, Pedro Pablo Kuczynski, will encourage privately led investment opportunities across many sectors, with key opportunities in infrastructure, real estate and mining. Market-driven policies including tax breaks for small businesses, cuts in consumption taxes, reduction of the national sales tax from 18 to 15 percent, and removal of regulations. These measures are expected to stimulate the formal economy and increase government revenues, bolstering consumption and investment. Other key proposals include improving agriculture and increasing the fiscal deficit in 2017 to improve access to health care and education. This increased government spending will help attract investment into the country.
The reduction in procedural regulation will allow for progress in infrastructure projects, with current tenders for Grupo Distriluz's $8.6 million outsourcing of technical activities for the reduction and control of energy losses, the creation of an information storage system for $3.6 million, the relocation and refurbishment of a CORPAC Data Centre for $3.5 million, and the installation and improvement of water system services across the country, each worth around $700,000.
The opening of the economy will more easily allow Wisconsin businesses that specialize in energy, information technology, construction and water-related industries to successfully bid for and provide these projects. A liberalized market will also bring opportunities for the development of new businesses and the strengthening of current small and midsize enterprises based on training, infrastructure and technology. The ongoing improvements to the economy have been recognized internationally by various analysts, such as PwC, which named Peru as the best Latin American country in which to do business and invest in 2016. Furthermore, expanded economic ties between Peru and the U.S. under the Trans-Pacific Partnership, and new opportunities for cooperation as Peru prepares to host the APEC Leaders’ Summit in November, will make bilateral trade and investment easier for Wisconsin companies.