Good news for our economy. Foreign direct investment (FDI) reached US$ 2,171 million in the third quarter of 2018, US$ 798 million higher than the total obtained in the same period of 2017, according to information from the Central Reserve Bank of Peru ('Banco Central de la Reserva del Perú', BCRP).
As a result, the private sector financial account recorded a positive flow of US$ 525 million in the third quarter of 2018, an increase of US$ 323 million with respect to the figure obtained in the same quarter of the previous year.
The increase in investment was due to the reinvestment of profits by companies related to industry, mining and the financial system, as well as capital contributions from various companies.
With respect to the first nine months of last year, the influx of FDI amounted to an increase of 55% over the same period in 2017, according to figures from the BCRP. Thus, between January and September 2018, long-term capital entered our country to the tune of US$ 6,259 million, representing 4% of GDP.
As a consequence, FDI reached its best level in a year and a half. The last time it reached the equivalent of 4% of GDP was in the summer of 2017.
Peru has the fourth highest level of foreign direct investment
According to a report issued last year by the Economic Commission for Latin America and the Caribbean (ECLAC), Peru ranked fourth as a recipient of Foreign Direct Investment (FDI) in South America in 2017, the year in which, according to the BCRP, our country attracted US$ 6,769 million.
In South America, Peru surpassed Chile with US$ 6,419 million, Bolivia with US$ 725 million, Ecuador with US$ 606 million, Paraguay with US$ 356 million, Uruguay with US$ 27 million and Venezuela.
Above Peru were Brazil with US$ 70,685 million, Argentina with US$ 11,517 million and Colombia with US$ 13,924 million.
ECLAC also reported that Foreign Direct Investment in South America reached US$111.028 billion in 2017, indicating a 4% fall compared to 2016.
Sources: BCRP / El Peruano / El Comercio