...Slow GDP Recovery Peru's economy is projected to grow by about 4% in 2015, an improvement from 2.4% last year. The increased growth is due to the ramp-up of new mining projects and the development of infrastructure projects that are being sponsored by the government agency Proinversion. The federal government is trying to stimulate the economy by accelerating license approvals for construction and environmental studies and lowering taxes on investments. Growth remains stymied by the lack of execution and corruption by regional governments. Consumer confidence is weak due to political and social issues. The upcoming presidential election also creates uncertainty and acts as a headwind for growth. Mining Companies Pressured Mining companies are being pressured by social actions against mining projects and lower metal prices. Volcan and Hochschild have been the hardest hit due to their exposure to low silver prices, which is currently priced below USD16/oz. Issuers that are primarily exposed...
