Peru, one of the four countries that integrate The Pacific Alliance, has a scenario of sustained economic expansion in the last decade, where exports has risen by 32% and private investment over 20% since 2009.
The economic behavior is basically the result of factors such as an attractive environment for investments, multiple existing opportunities, the economic dynamism reached and an active policy on international trade negotiations.
Since over two decades ago, Peru has assumed a wide opening investment policy, setting a coherent, promoter, stable and transparent legal framework based on equality of conditions for foreign and domestic investments.
At an international level, Peru has developed a network of international investment treaties, nowadays, Peru has 31 current agreements. Besides, the possibility for preferential access to extended markets through commercial agreements with its main partners, such as Free Trade Agreements with the U.S.A. and China and a Partnership Agreement with the European Union.
Its legal framework for foreign investment is one of the most modern and less restrictive ones worldwide. In fact, Peru leads the Index of Economic Freedom (Heritage Foundation) in Latin America and rose 13 positions to number 27 last year (among 152 countries). This index based on 5 main areas (size of the government, legal structure and guarantee of property rights; monetary freedom; freedom of international trade, and credit and labor regulation in companies) shows how economies improving in this index are also increasing in economic efficiency, and emerging markets as Peru perfectly reach this pattern.
Apart from macroeconomic and other surveys evidences, Peru has several investment opportunities because of:
• Countless natural resources available for transformation: basic and precious minerals, hydrocarbons or great capacity for hydric energy generation.
• Optimum climatic conditions and land with agricultural potential: high agricultural yield on the Peruvian coast, particularly high value crops (fruit and vegetables), in which Peru has been consolidating as an important worldwide exporter.
• Biodiversity: it is the second country in Latin America in terms of natural forest extensions and it has a vast coast; besides, it is the main exporter of fish flour and oil.
• Growing cities: Lima, the capital city of Peru, has nearly 10 million inhabitants, and there are other fast developing cities, with urban percentage of around 65%.
• Strategic location in the Southern Hemisphere: located in the center of South America, a few hours by plane from main American cities and with a growing investment in port infrastructure to intermediate the South American trade with Asian Pacific countries with preferential customs treatment.
The market is the world.
Ana Sanchez
International Consultant
Globalider
