Evolution of FDI

FOREGN DIRECT INVESTMENT 


I. FDI FLOWS ACCORDING TO THE CENTRAL RESERVE BANK OF PERU

The Central Reserve Bank of Peru (BCRP, for its acronym in Spanish) reported for 2019 an inflow of US$ 8,892 million in foreign direct investment, US$ 2,404 million higher than the amount obtained in 2018. For 2020, a contraction of US$ 7,340 million is estimated with an estimated flow of US$ 1,552 million, as a consequence of the crisis associated with COVID-19, estimating a partial recovery in 2021 with an estimated flow of US$ 2,460 million of foreign direct investment.
 

 Foreign Direct Investment Flows
 Central Reserve Bank of Peru
 (Million US$)

 

Foreign * Projection - Inflation Report - December 2020
Source: BCRP
Elaboration: ProInversión

 

 II. RECORD OF CAPITAL CONTRIBUTIONS

The figures on foreign investment presented below are based on the registration statements submitted by investors or companies receiving investment before PROINVERSIÓN, in compliance with the provisions of Articles 2 and 19 of Legislative Decree No. 662.

This regulation states that foreign investments made in the country are automatically authorized, and once made, they must be registered before the Relevant National Agency. However, although Legislative Decree No. 662 establishes that the registration of foreign investments is mandatory, it does not establish a fixed term or a penalty for those who do not comply with it.

It should be noted that the Foreign Investment Registry in charge of ProInversión includes only the contributions made to the share capital of a Peruvian company, coming from abroad and channeled through the National Financial System. These contributions also include the transfer of shares between domiciled and non-domiciled persons.

Unlike ProInversión, the foreign direct investment figures published by the Central Reserve Bank of Peru are obtained by considering, in addition, two other components. The first is the reinvestment of profits, which refers to the difference between the profits generated in a period minus the dividends paid to foreign investors in the same period; and secondly, the net loans with the parent company between the investor and its affiliated company; that is, the difference between the loans received minus the loans paid

As of June 30, 2020, the balance of foreign investment as capital contributions reached US$ 26,636 million.


Balance of Foreign Direct Investment
(Million US$)

(*) Updated as of December 2020
Source: ProInversión
Elaboration: ProInversión
 

The United Kingdom, Spain and Chile are the main sources of capital inflows to Peru, accounting for 48% of the balance as of June 2020.

Balance of Foreign Direct Investment per Country

(*) Updated as of December 2020

Source: ProInversión
Elaboration: ProInversión


Regarding the distribution of contributions per sector of destination, 61% was concentrated in the mining, communications and finance sectors.


Balance of Foreign Direct Investment per Economic Sector

(*) Updated as of December 2020

Source: ProInversión
Elaboration: ProInversión

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