Investing in Peru is an excellent alternative for companies and investors interested in expanding their operations in Latin America. The combination of economic stability, natural resources, access to global markets, and competitive costs make Peru a strategic choice for companies looking to expand in Latin America. The mining, agribusiness, infrastructure, and tourism industries offer exceptional opportunities for investors interested in tapping into the country’s growth potential.
The country has a domestic market of 34 million people. Its main trading partners are the United States, China, Brazil, the European Union, and Chile.
Five reasons to invest in Peru:
1. Sustained economic growth: In recent decades, Peru has maintained an economic growth rate above the regional average. Despite global challenges, the country has remained resilient, with market-oriented economic policies and prudent macroeconomic management, which has allowed it to attract foreign capital. According to Peru’s Minister of Economy and Finance, José Arista Arbildo, Peru has recorded an average economic growth of 4.4% in the last 20 years, the highest in Latin America, and has low inflation (3.1%). In addition, it has Net International Reserves of US$76 billion (27% of GDP), a stable exchange rate, and a shallow country risk, second only to Chile. Regarding public finances, the country has the lowest debt in the region (32.9% of GDP) and a fiscal deficit of 2.8%.
2. Political stability and favorable regulatory framework: Although Peru has undergone political changes, it maintains an institutional and legal framework that promotes foreign investment. Trade agreements and free market policies provide investors with legal certainty. Seventeen projects valued at over US$3 billion are expected to be awarded in the second half of 2024.
3. Natural resources and mining: Mining is one of the most attractive sectors for investors, as Peru is one of the world’s leading producers of copper, silver, gold, and zinc. The abundance of resources and the infrastructure developed in this sector make the country an attractive destination for mining investment. Tia Maria and Michiquillay could bring Peru closer to Chile’s copper production levels.
4. Trade agreements and market access: Peru has numerous trade agreements, including free trade agreements with major economies such as the United States, the European Union, China, and other Asia-Pacific countries. These agreements allow companies setting up in Peru to access a large global market without tariff restrictions. Peru currently has 22 trade agreements covering 90% of its exports.
5. Competitive labor force: The country offers a skilled labor force at competitive costs compared to other countries in the region, making it an ideal location for companies seeking operational efficiency.
Attractive industries to invest in Peru:
1. mining and energy: Peru continues to be a leader in mineral production, and investments in energy, especially renewable energy, are growing, presenting an attractive opportunity for companies in these sectors.
2. Agribusiness: Peru’s diverse climate and access to global markets have made it a key player in exporting agricultural products such as fruits, vegetables, and coffee. Agribusiness companies find an environment conducive to growth in Peru, with favorable conditions for production and exports. Peru has grown from US$500 million in fruit exports 20 years ago to US$10 billion today, with more than 200,000 hectares ready for production. Also relevant in this sector are the Alto Piura and Majes irrigation projects.
3. Infrastructure: Peru constantly needs to modernize and expand its infrastructure, which offers opportunities for construction companies, engineering firms, and technology providers in areas such as transportation, telecommunications, and energy.
4. Tourism: Peru’s cultural, historical, and natural wealth, with emblematic sites such as Machu Picchu, positions it as an attractive destination for investment in the tourism industry, which continues to expand and generate demand for new services and experiences.