Overview

Peru has strong economic fundamentals. In the last decades it has shown an economic performance above the regional average. This trend is expected to remain solid in the future. The government has a robust capacity to implement countercyclical fiscal policies if required to support aggregate demand and the ongoing application of structural reforms to ensure the confidence of private investors.

The economic growth has been underpinned by a dynamic private sector and an emerging middle class. Employment rates have decrease whilst income levels have increased, to reduce poverty rates by more than half.

Foreign Direct Investment plays an important role in the Peruvian economy. Thanks to its attractive legislative and fiscal framework and dynamic sectors, Peru has become one of the leading countries in South America as receptor of FDI.

Peru offers investors economic, political and legal stability. The country is part of the International Center for Settlement of Investment Disputes (ICSID) and the equal treatment of national and foreign capital (decree-law n°662 of 1991). Investors can also benefit from fix provisions based on the current legislation by signing an agreement on legal stability and registered in the database of Proinversion, giving a stable future legal and tax scenario for their investments in the mid-term. Additionally, most investments can be done without prior authorization with few exceptions such as in the media or close to border zones.

The Netherlands is the fourth largest investor in Peru according to Proinversion´s database with a total of US$ 1.5 billion allocated in finance (31%), mining (27%), industry (18%) and energy (17%). Some of largest Dutch investors are SMC Cerro VerdeEMBI Netherlands, MVM Resources International, APM Terminals, CEMEX Caracas Investment, Callao Port Holding, Coffea Arabica Marketing, among others. Nonetheless, those figures might be higher since Proinversion only registers the initial investor based on the declaration of the parent company so it does not show the acquisition of Repsol’s assets in Peru by Shell in 2014, the investments from APM Terminals in the improvement of the Port of Callao, or the investments of the Makro in the Peruvian commerce sector.

Peru ranks 50 in the Ease of Doing Business Ranking 2016, second in the list amongst South American Countries; the country risk has been below the regional average and has a growing domestic and external market thanks to a better local purchasing power and an increasing number of Free Trade Agreements.

With an Investment Grade awarded by all well-known international rating agencies, Peru is a land of possibilities worthy to explore.

Peru: On the Road to OECD