3.4.14

The Economic Effect of Peruvian Mining Investment Between 2013-2024

María Alejandra Zegarra

The Peruvian government has announced a program of mining investment to be carried out between 2013 and 2021. This research paper quantifies the effect of this investment on the mining sector specifically, and on the Peruvian economy more generally by estimating the evolution of mine production, and the growth in employment and gross domestic product (GDP). This research is based on a macroeconomic model that represents the relationships between the mining industry and other industries in the Peruvian economy using annualized announced investment schedules to predict annual mine production. The results indicate that mining output will increase by 27.9% per year from 2014 to 2024 due to an expansion in copper production. This increased mine output and investment will benefit 10 million workers in the Peruvian economy, with agriculture (26.2%) and trade (18.8%) showing the largest growth in demand. Finally, tax collections will increase by 143.6% between 2013-2024.

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