Economic report: private investment in Peru increases
The Peruvian capital, Lima, is selected as the best city for investment in Latin America
IDN Consultant Agency in Santiago de Chile has assessed Lima as the best city in Latin America to invest in, scoring 77.6 out of 100 in their ranking “Most attractive cities in Latin America to invest”. This takes Peru to the top of the list, up from 4th position last year. Investment in Peru is around 27% of GDP, placing the country’s investment rate among the highest in the world.
The country remains the fourth largest recipient of foreign investment in the region. The Economic Commission on Latin America and the Caribbean (ECLAC) announced that Peru’s infrastructure sector has received a record investment of more than US$31,8 billion between 2008 and 2012. The investment flow was considerably higher in sectors like energy, telecommunications and roads. According to the World Bank, the considerable reduction in risk perception of the Peruvian economy means investments do not require high risk coverage, which has in turn encouraged confidence from the private sector.
Investment bank Goldman Sachs assessed Peru as having one of the lowest vulnerabilities to external shocks caused by changes in international financial conditions amongst the main emerging economies. The United Nations Conference on Trade and Development’s Secretary General, Mukhisa Kituyi, said “Peru is one of the few nations that keep a high economic growth (over 5%) despite the international financial crisis”.
Peru’s Minister of Economy and Finance, Luis Miguel Castilla, reported that the economy would grow 5.7% this year, maintaining the country’s status as the leader of the region. This was based primarily on double digit growth in nontraditional exports, important mining projects such as Toromocho and Las Bambas, which will increase copper production, and an increase in investment based on an improvement on private sector confidence.