Recently published research from Business Monitor International, "Peru Power Report Q1 2014", is now available at Fast Market Research
Boston, MA -- (SBWIRE) -- 12/31/2013 -- Peru's ambitious capacity expansion plans and robust macroeconomic trajectory continue to underpin our buoyant forecasts for growth across all segments of the country's power sector. Despite fears that a slowdown in China will have a deleterious impact on the country's commodity-derived export revenues, reservations that underpin our below-consensus macroeconomic outlook, we maintain that the country will retain its position as one of the most vibrant economies in Latin America. It will maintain this mantle based on its significant mineral wealth, a host of attractive investment opportunities across certain industries (including the power sector) and healthy growth in consumer demand.
View Full Report Details and Table of Contents
Key trends and developments in the Peruvian electricity market:
- While we expect Peru to remain one of the most dynamic economies in Latin America over our forecast period a slowdown in China is a threat to the country's export-oriented economy. As China rebalances its economy and moves from an investment-led growth model to one in which private consumption plays a more fundamental role, Peru could be affected quite dramatically as demand for its resources also cools -with trade and investment channels hit hard.
- Indeed, although economic growth is robust, we have seen this view start to play out. As a consequence, BMI's Country Risk team has downgraded its 2013 real GDP growth forecast from 5.4% to 5.1%, based on weak real GDP growth in H113, as well as further signs that the external weakness is weighing on the broader economy. In addition, following a substantial currency sell-off in recent months, we believe that a weaker sol is likely to weigh on consumers' purchasing power and dampen sentiment, leading to more moderate real private consumption growth.
- However, as growth slows we expect the government to come under greater pressure to spend to stimulate growth - creating some upside to our forecasts for the power sector. Notably, with President Ollanta Humala having come under fire for not sharing the proceeds of the country's mining boom, we forecast government expenditure will grow - and this will feed into support for new power infrastructure and capacity.
- To this end, President Humala continues to advance plans to establish a 1,000km, US$2.4bn natural gas pipeline known as the Peruvian Southern Pipeline project, which will reportedly be tendered in February 2014. The project is hugely ambitious in scale and will include US$4bn-worth of new power plants (known as the Nodo Energetica del Sur) and a US$3.5bn petrochemicals complex. It is hoped the project will boost economic development in the south of Peru.
About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff will help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.
Browse all Energy research reports at Fast Market Research
You may also be interested in these related reports:
- Turkey Power Report Q1 2014
- Kenya Power Report Q1 2014
- China Power Report Q1 2014
- Poland Power Report Q1 2014
- Mexico Power Report Q1 2014
- United Kingdom Power Report Q1 2014
- Global Power Survey 2013-2014 - Market Trends, Marketing Spend and Sales Strategies in the Global Power Industry
- Brazil Power Report Q1 2014
- Power Quarterly Deals Analysis: M&A and Investment Trends - Q1 2013
- Romania Power Report Q1 2014