Advantages of investing in Peru

Macroeconomic Context

Macroeconomic Indicators

Responsible Fiscal Policies: A Model in Latin America

During the period from 2021 to 2023, Peru stood out for its sound fiscal management, with an average deficit of 2.3 percentage points, below that of most countries in the region. This performance puts the country in a favorable position compared to economies such as Brazil, Colombia, and Mexico.

In addition, Bloomberg projections indicate a positive trend toward the end of 2024 (3.5% GDP), but with a downward adjustment in subsequent years. Reaffirming Peru as a benchmark for fiscal responsibility in the region.

Fiscal deficit in Latin America'

(Percentage of GDP)

Source: Bloomberg.

Controlled Inflation: Peru is in an Advantageous Position in Latin America

During the period from 2021 to 2024, Peru recorded a downward trend in inflation, lower than that of key Latin American countries such as Brazil, Colombia, Mexico, and Chile. This performance reflects effective price control, which contributes to economic stability. Inflation remained around the center of the target range set by the Central Reserve Bank of Peru, consolidating Peru as an attractive destination for investment, with a predictable and reliable economic environment.

Inflation in Latin America

(Annual percentage variation, CPI)

Fuente: Bloomberg.

Weakening of currencies in Latin America

In the case of exchange rate volatility in the region’s currencies, they show mixed performance during the period from 2021 to 2024. Peru stands out as one of the most stable economies in the region, followed by Chile and Brazil, which exhibit slightly more volatile fluctuations.

Exchange rate in Latin America

(Local currency against the US dollar; Index Dec-21=100)

Fuente: Bloomberg.

Economic growth

Sustained Growth in Gross Domestic Product (GDP): Peru Leads the Region

According to estimates from the World Economic Outlook, published in October 2024 by the International Monetary Fund, Peru will rank as one of the countries with the highest GDP growth in Latin America (alongside Brazil) at the end of 2024.
Peru’s economy is expected to grow by an estimated 2.6 percentage points in 2025, outpacing key countries such as Colombia, Chile, Mexico, and Brazil.

Latin America: Gross Domestic Product Projection, 2024-2025^1/

(Actual annual percentage variation) 1/ The arrows indicate revisions to the IMF’s WEO projections for Oct-24 compared to those for Apr-24.

Source: International Monetary Fund.

Sustained Gross Domestic Product (GDP) Growth: Stable and Promising Performance

Over the last 10 years, Peru’s Gross Domestic Product (GDP) has shown steady growth, with an average annual increase of 2.3%. This performance underscores the stability and resilience of the Peruvian economy, laying the foundation for an even more promising future.

Year	GDP (millions of soles in 2007)	Percentage variation in GDP
Average		2,3%
2014	467 308	2,4%
2015	482 506	3,3%
2016	501 581	4,0%
2017	514 215	2,5%
2018	534 626	4,0%
2019	546 605	2,2%
2020	487 191	-10,9%
2021	552 560	13,4%
2022	567 390	2,7%
2023	564 261	-0,6%

/1 Extracted from MMF for 2025-2028, Ministry of Economy and Finance.

Note

The GDP estimate for 2024 in soles, based on the percentage variation in the MMF for 2025-2028 for that year.

Source: Central Reserve Bank of Peru.

Per Capita GDP Growth: Improving the Well-being of Peruvians

Over the last decade, Peru’s real GDP per capita has grown by an average of 0.9% annually, reflecting a steady improvement in the economic well-being of its citizens. This steady growth highlights the country’s ability to generate more value per capita, driving development and quality of life throughout the territory.

Year	GDP per capita (Soles in 2007)	Percentage variation in GDP per capita
Average		0,9%
2014	15 779	1,4%
2015	16 103	2,1%
2016	16 487	2,4%
2017	16 602	0,7%
2018	16 939	2,0%
2019	17 012	0,4%
2020	14 933	-12,2%
2021	16 726	12,0%
2022	16 989	1,6%
2023	16 731	-1,5%

Source: Central Reserve Bank of Peru.

Investment

Investment Growth: Driving Sustainable Development

Over the last decade, Peru’s gross domestic investment has grown at an average annual rate of 1.0%, highlighting the continued increase in confidence in the national economy. This growth is key to driving infrastructure, innovation, and development projects, consolidating Peru as an attractive destination for long-term investments.

Year	Gross Domestic Investment – GDI1/ (millions of Soles in 2007)	Percentage variation in GDI
Average		1,0%
2014	127 664	-2,2%
2015	121 496	-4,8%
2016	116 614	-4,0%
2017	116 234	-0,3%
2018	121 327	4,4%
2019	125 337	3,3%
2020	104 980	-16,2%
2021	141 318	34,6%
2022	142 311	0,7%
2023	134 634	-5,4%

Source: Central Reserve Bank of Peru.
1/ The GDI includes private and public Gross Fixed Investment and variations in inventories.

Private Investment Participation: A Pillar of Economic Growth

Over the last decade, private investment has accounted for an average of 80.5% of total Gross Domestic Investment in Peru. This solid participation rate has remained constant, even during the challenges of the COVID-19 pandemic, reflecting the private sector’s confidence and commitment to the country’s economic development.

Year	Gross Domestic Investment – GDI1/ (millions of Soles in 2007)	Private Gross Fixed Investment (millions of Soles in 2007)	Share of private Gross Fixed Investment
Average			80,5%
2014	127 664	102 542	80,3%
2015	121 496	98 101	80,7%
2016	116 614	93 159	79,9%
2017	116 234	93 199	80,2%
2018	121 327	97 026	80,0%
2019	125 337	101 406	80,9%
2020	104 980	84 654	80,6%
2021	115 974	141 318	82,1%
2022	142 311	115 451	81,1%
2023	134 634	107 032	79,5%

Source: Central Reserve Bank of Peru.
1/ The GDI includes private and public Gross Fixed Investment and variations in inventories.

Private Investment: A Key Driver of Peru’s GDP

In the last 10 years, private investment has represented, on average, 19.3% of Peru’s Gross Domestic Product (GDP). This percentage has remained stable, even during the years of the COVID-19 pandemic, reflecting the strength and resilience of the private sector in the face of global challenges.

Year	GDP (millions of Soles in 2007)	Private Gross Fixed Investment (millions of Soles in 2007)	Share of private Gross Fixed Investment
Average			19,3%
2014	467 308	102 542	21,9%
2015	482 506	98 101	20,3%
2016	501 581	93 159	18,6%
2017	514 215	93 199	18,1%
2018	534 626	97 026	18,1%
2019	546 605	101 406	18,6%
2020	487 191	84 654	17,4%
2021	552 560	115 974	21,0%
2022	567 390	115 451	20,3%
2023	564 261	107 032	19,0%

Source: Central Reserve Bank of Peru.
1/ The IBI includes private and public Gross Fixed Investment and inventory changes.

Peru: Exceeding the Regional Average in Foreign Direct Investment

In 2023, Peru achieved Foreign Direct Investment (FDI) equivalent to 1.5% of its GDP, falling below the regional average for Latin America but surpassing countries such as Bolivia, Paraguay, Argentina, Ecuador, and Bolivia. This performance underscores international investors’ continued confidence in Peru’s economic potential.

Foreign Direct Investment as net capital inflow, 2023

(Percentage of GDP)

Source: World Bank.

Business confidence

Economic climate indicator in Latin America

According to the Economic Survey for Latin America (2nd quarter of 2024) prepared by the Brazilian Institute of Economics, Fundação Getulio Vargas , Peru has an economic climate indicator close to the Latin American average, surpassing Colombia, Chile, Ecuador, Argentina, and Bolivia.

Economic Climate Indicator for Latin American Countries (in points)

Source: Economic Survey for Latin America (2nd quarter of 2024) prepared by the Brazilian Institute of Economics, Fundação Getulio Vargas.

Expectations Indicator for the next six months in Latin America

According to the Economic Survey for Latin America (2nd quarter of 2024) prepared by the Brazilian Institute of Economics, Fundação Getulio Vargas , Peru is the third country in Latin America with the best economic outlook for the next six months.

Expectations Indicator for selected countries (in points)

Source: Economic Survey for Latin America (2nd quarter of 2024) prepared by the Brazilian Institute of Economics, Fundação Getulio Vargas.

Business Confidence Indicator

According to the Survey on Macroeconomic Expectations of the BCRP , the index of expectations for the Peruvian economy over the next three months in 2024 has shown a favorable recovery compared to 2023. In particular, the average recorded this year exceeds the average expectations for 2023 by 8.5 points.

Date	3-month economic expectations index
May-23	44,5
Jun-23	42,8
Jul-23	44,5
Aug-23	44,1
Sep-23	40,4
Oct-23	38,7
Nov-23	37,6
Dec-23	41,2
Jan-24	43,8
Feb-24	47,2
Mar-24	50,8
Apr-24	50,0
May-24	47,5
Jun-24	50,4
Jul-24	51,1
Aug-24	51,9
Sep-24	51,8
Oct-24	51,7
Nov-24	50,6

Source: Survey on Macroeconomic Expectations of the BCRP.

Country risk

In 2023, Peru recorded an average country risk measure of 184 basis points, which shows it to be a stable economy compared to most countries in the region. This year, the Peruvian economy has registered 249 and 186 basis points below the average for Latin American countries and emerging countries, respectively.

Average country risk measure through 2023

(basic points)

Source: Central Reserve Bank of Peru.

Country Risk Rating

As of October 2024, Peru obtained a Baa1 rating from the credit rating agency Moody’s, while Standard & Poor’s assigned a BBB- rating and Fitch a BBB rating. These ratings placed Peru among the highest-ranked countries, above Mexico, Colombia, Panama, Paraguay, and Ecuador.

Country risk rating for 2024^1/

Country/region	Moody’s	S&P	Fitch
Chile	A2	A	A-
Brasil	Ba1	BB	BB
Uruguay	Baa1	BBB+	BBB
Perú	Baa1	BBB-	BBB
México	Baa2	BBB	BBB-
Colombia	Baa2	BB+	BBB-
Panamá	Ваа3	BBB	BB+
Paraguay	Baa3	BB+	BB+
El Salvador	Caa1	B-	CCC+
Ecuador	Caa3	B-	CCC+
Bolivia	Caa3	CCC+	CCC
Argentina	CA	CCC	CCCu

1/ Updated as of Oct. 2024.

Note

Long-term debt payment rating (in US$).

Source: Bloomberg.

Network of trade agreements:

Promoting Access to International Markets

In the area of investment, Peru has signed a series of key agreements, including bilateral agreements for the promotion and reciprocal protection of investments (APPRI), as well as broader trade agreements that include investment-related commitments.

With a solid network of 22 trade agreements in force, Peru not only facilitates access to international markets but also contributes to reducing trade barriers, thereby boosting investment flows and foreign trade.

22 trade agreements in force and investment commitments (chapters)

#	Agreement	Partner	Effective Date	Investment Chapter
1	Andean Community (CAN)	Bolivia, Colombia, Ecuador	Cartagena Agreement May 26, 1969	Decisions of the CAN 292 and 293
2	Economic Complementation Agreement – ACE 50	Cuba	March 9, 2001	X
3	Economic Complementation Agreement – ACE 58: MERCOSUR	Argentina Brasil Paraguay Uruguay	January 2, 2006, with Argentina, Brazil, and Uruguay February 6, 2006, with Paraguay	X
4	Free Trade Agreement between Peru and Chile – Expanded ACE 38	Chile	March 1, 2009	X
5	The United States – Peru Trade Promotion Agreement (TPA)	Estados Unidos	February 1, 2009	X
6	Canada-Peru Free Trade Agreement (FTA)	Canadá	August 1, 2009	X
7	Peru-Singapore Free Trade Agreement (FTA)	Singapore	August 1, 2009	X
8	China-Peru Free Trade Agreement	China	March 1, 2010	X
9	South Korea-Peru Free Trade Agreement (FTA)	South Korea	August 1, 2011	X
10	Protocol between the Republic of Peru and The Kingdom of Thailand to accelerate the liberalization of trade in goods and trade facilitation, and its additional protocols	Thailand	December 31, 2011.	APPRI of 11.15.1993

Source: Ministry of Foreign Trade and Tourism (MINCETUR)

WTO: It is made up of 166 economies, among which Peru has been a contracting party to GATT of 1947 since October 7, 1951 and a founding member of the WTO since January 1, 1995 .

APEC: 21 economies. Among them, Peru has been a member since November 1998 (Australia, Brunei Darussalam, Canada, Chile, China, Hong Kong, Indonesia, Japan, Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, Philippines, Russia, Singapore, Chinese Taipei, Thailand, United States, and Vietnam).

APEC: Connecting Peru with the Major Pacific Economies

Peru has been a member of APEC (Asia-Pacific Economic Cooperation) since November 1998, forming part of an economic bloc that includes 21 key economies: Australia, Brunei Darussalam, Canada, Chile, China, Hong Kong, Indonesia, Japan, Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, Philippines, Russia, Singapore, Taipei China, Thailand, United States, and Vietnam.

Agreements for the Promotion and Reciprocal Protection of Investments (APPRI)

#	País	Date	Enlace del Acuerdo
1	Germany	01.05.1997	Go to link
2	Argentina	24.10.1996	Go to link
3	Australia	02.02.1997	Go to link
4	Republic of Korea	03.06.1993	Go to link
5	Canada	14.11.2006	Go to link
6	Chile	02.02.2000	Go to link
7	Colombia	Convenio: 30.12.2010 APPRI: 26.04.1996	Go to link
8	Costa Rica	01.06.2013	Go to link
9	Cuba	25.11.2001	Go to link
10	Denmark	17.02.1995	Go to link
11	El Salvador	15.12.1996	Go to link
12	Spain	17.02.1996	Go to link
13	United States	01.02.2009	Go to link
14	Finland	14.06.1996	Go to link
15	France	30.05.1996	Go to link
16	Iceland 2	01.10.2011	Go to link
17	Italy	18.10.1995	Go to link
18	Japan	10.12.2009	Go to link
19	Honduras	01.01.2017	Go to link
20	Liechtenstein 2	01.07.2011	Go to link
21	Malaysia	25.12.1995	Go to link
22	México	01.02.2012	Go to link
23	Norway 2	Convenio 01.07.2012 APPRI 05.05.1995	Go to link
24	Netherlands	01.02.1996	Go to link
25	Panamá	01.05.2012	Go to link
26	Paraguay	18.12.1994	Go to link
27	Portugal	18.10.1995	Go to link
28	United Kingdom	21.04.1994	Go to link
29	Czech Republic	06.03.1995	Go to link
30	People’s Republic of China	Convenio 01.03.2010 APPRI 09.06.1994	Go to link
31	Romania	01.01.1995	Go to link
32	Singapore	Convenio 01.08.2009 APPRI 27.02.2003	Go to link
33	Sweden	01.08.1994	Go to link
34	Switzerland 2	Convenio 01.07.2011 APPRI 23.11.1993	Go to link
35	Thailand	15.11.1993	Go to link
36	Belgium-Luxembourg Economic Union	11.09.2008	Go to link
37	Venezuela	18.09.1997	Go to link
38	Agreement with the European Union 3	01.03.2013	Go to link

(*) Alemania, Dinamarca, España, Finlandia, Francia, Italia, Países Bajos, Portugal, Reino Unido, Republica Checa, Rumania, Suecia y Luxemburgo.
Source: PROINVERSION

Advantages of investing in Peru