Many businesses see Perú as an investment opportunity, with service providers in other Latin American countries setting up operations there. Focusing on web and mobile applications, they only choose the best and brightest software engineers from Perú’s top universities.
Talent Pool & Education
Perú has the potential to be a center for innovation, according to an Oxford Business Group report, although slow progress in rolling out regional fiber-optic networks has stalled plans to digitally connect the entire country. Investment in R&D and innovation has been increasing, partly as a result of greater government commitment to science and technology. Local initiatives include Laboratoria , a coding school for women that has already graduated more than 2,000 developers, and Crack the Code, which teaches computer science and the basics of programming to school students. In just one example of the way digital innovation has been driven by the pandemic, Wawa, a locally made laptop powered by a solar panel, has given poorer children improved access online.
Spanish is the official language but Peruvian engineers are fluent in English and familiar with the business culture and mindset of the US.
The pandemic led to a decline in GDP of 11.1% in 2020 and a massive fall in employment. Despite this, the World Bank predicts a strong rebound through 2021, and the government has launched a package of financial aid to support the private sector. Borders re-opened in late 2020, a boon for Perú’s tourism industry, which generates $5 billion annually, with an average of 4.5 million visitors every year. Perú invests just 0.08% of its GDP in innovation (by comparison, Chile invests 0.37%); however, a directional change towards entrepreneurship makes this a destination to watch.
Leftist political novice Pedro Castillo, a rural teacher, claimed a narrow victory in the June 2021 presidential election and faces a deeply divided Congress. Pedro Francke, an experienced former World Bank economist, has been named as a key economic advisor, and global news magazine Foreign Policy predicts Castillo will moderate his pre-election rhetoric. “This is a more mainstream agenda focused on a more egalitarian and inclusive society rather than on radical expropriation.”