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Peru's current political and economic situation have California-based virtualization software firm VMware (NYSE: VMW) waiting to see how it will move on its expansion plans, company senior director for Latin America Javier Carrión told BNamericas.
"Although we don't like to talk about political issues, we are going to see how the market will behave. On Monday [June 6], Peru's stock market plummeted, so we will see how it will react. We need to see how the political and economic situation develops, and then we will make decisions," Carrión said.
On June 5, Peruvians elected left-leaning Ollanta Humala as president. He won 51.54% of the vote, versus 48.45% for his opponent, right-leaning Keiko Fujimori. During the campaign, though, Humala strived to cast a more moderate image with a promise to maintain the country's recent economic growth while promoting social programs.
But the election result made Peru's stock market jittery, plunging a record 12.5% in trade on Monday - its biggest since it was created in December 1981 - before the market closed.
Peru is a key market for VMware's three-year geographical expansion plan in the region, with clients in the financial and telecommunications sector.
Previously, Marco Fontenelle, company manager of partners, OEMs and alliances for Brazil and the rest of Latin America, told BNamericas that VMware is looking to continue double-digit growth in the region by focusing on the current customer base, taking those clients to the next level in virtualization.
VMware reported a net profit of US$126mn during the first quarter of 2011, up 20% year-over-year, according to results released by the company.