The central regions of the country, including Junín, Pasco, and Lima provinces, contribute 11% of the total GDP, which is more than PEN 38.7 million, with mining being the most important productive activity. Yet, in terms of competitiveness—an aspect that is key to foster the development and well-being of the population—this region has not seen positive results, informed Diego Macera, general manager of the Peruvian Institute of Economics (IPE), during the second day of keynote presentations at Rumbo a PERUMIN, Central Peru Edition, organized by the Peruvian Institute of Mining Engineers (IIMP) and PERUMIN 35’s Executive Committee.
“In the past five years, the mining and hydrocarbon sector has accounted for a quarter of the country’s central region’s production. This percentage exceeds the national average. Despite volatility in the international prices of minerals, there is a real possibility for mining production in this region to keep expanding,” noted Macera.
According to the Regional Competitiveness Index (INCORE)—an assessment carried out by IPE that establishes the level of competitiveness of all 25 regions of the country by looking at pillars of analysis that include the economic environment, infrastructure, health, education, work, and institutionality—the central region, with the exception of Lima provinces, scores below average in all the pillars.
The competitiveness score, with values ranging from 0 to 10, indicates that Lima provinces are ranked 7th in terms of national competitiveness, with a score of 5.1, followed by Junín in 14th place, with 4.2, while Pasco is 20th, with 3.6.
Mining and competitiveness
Macera also explained that, in the central region, the mining projects that are in a construction stage total nearly US$3 billion. Examples of these projects are Ayawilca, in Pasco; the expansion of Toromocho, Ariana, Mantaro Phosphates and Shalipayco, in Junín; and the Río Seco Copper Plant, in Lima provinces.
“These regions have great future mining, hydrocarbon, and agriculture potential. Unfortunately, there are large projects that are not being executed yet, which impacts the region’s competitiveness negatively. We need to highlight the value of these projects, along with those plans associated with these economic activities,” concluded Macera.