APEC Peru 2024: Peru, an Attractive Destination for Foreign Direct Investment

Peru is emerging as a highly attractive destination for foreign direct investment (FDI) due to its sustained growth, economic stability, and favorable policies. In the first quarter of 2024, FDI in Peru saw an impressive 71% increase compared to the same period the previous year, according to figures from the Central Reserve Bank. This growth solidifies Peru's position as the fourth most favored destination for FDI in South America.

With an inflation rate of 2.1% as of July 2024, the lowest among Latin American countries, Peru has earned the confidence of international investors. The 2023 RepCore Nations report ranked Peru first in regional reputation, surpassing countries such as Argentina, Brazil, and Mexico.

Peru has a vast network of trade agreements, which includes 22 trade agreements, 28 bilateral investment treaties, and 9 double taxation avoidance agreements. This network offers investors preferential access to key markets and additional protection for their investments.

The Jorge Chávez International Airport, the main gateway to Peru, is undergoing expansion to accommodate approximately 30 million passengers annually. This infrastructure improvement will benefit both tourists and business travelers, opening new investment opportunities by strengthening connectivity and facilitating access to new markets.

Additionally, by the end of this year, the Port of Chancay will begin operations, reshaping maritime routes between Asia and South America. This port will centralize and efficiently distribute cargo, reducing travel time between Peru and Asia by at least 10 days. This mega infrastructure project will significantly improve maritime connectivity, positioning Peru as a key logistics hub in South America.

Moreover, Peru offers a wide array of investment opportunities, ranging from manufacturing and textiles to an expanding agribusiness industry. According to the Central Reserve Bank of Peru (BCRP), FDI is expected to grow by 119% in 2024 and an additional 3% in 2025, reflecting the country's continued attractiveness to foreign investors.

With a diversified economy, favorable policies, and constantly improving infrastructure, Peru stands as a secure and attractive destination for foreign direct investment, offering opportunities for economic growth and sustainable development.