Peru’s export association, Adex, said Thursday that the country’s export sector is witnessing a “perfect storm” that is affecting economic growth, according to financial daily Gestion.
The association said that weak global economic growth, coupled with Peru’s lower competitiveness and the lack of measures to support growth have contributed to the deteriorating situation for the country’s export sector.
Some 2,349 companies stopped exporting in the January to July period, compared to 2,188 companies that began exporting, Adex reported. Most of the companies that have stopped exporting are in the non-traditional sector, including clothing companies, non-traditional agriculture exporters, and others.
“No less than 38 percent of our companies are in a very weak position in the market,” the association’s chief economist, Carlos Gonzalez, said. “This weakness needsto be a priority factor to consider for our authorities,” it added.
A recent report by the World Economic Forum said that Peru has maintained its spot for global competitiveness at No. 61, but it fell in eight indicators, including institutions, infrastructure, basic health and education, higher education, labor market efficiency, technology, business sophistication, and innovation.
“The setback in those indicators is incompatible with the possibility of maintaining a high and sustained rate of growth in the medium and long term,” Gonzalez said. “If immediate actions are not taken, companies and jobs will continue to disappear and it will be increasingly difficult to recover and improve our export capacity.”