Business confidence in Peru has recently recovered, although certain challenges must be overcome to increase private investment, the
"At this moment, while business confidence has improved considerably and is in positive territory, short-term political uncertainty is restricting private investment growth. Reforms must be implemented to lower barriers to private investment," said Paula Garda, head of the OECD team for Peru and Colombia, in remarks to Andina News Agency.
It is worth noting that,
according to the most recent survey of business executives by the Central Reserve Bank (BCR), the economic outlook for the next three months was in the optimistic range, above 51 points last October. This marks a positive result for the fourth consecutive month.
In order to increase investment in Peru, Garda suggested that regulatory changes be implemented mainly in favor of micro and small enterprises (MSEs), which make up the majority of the country's business sector and public companies.
"Peru must align itself with other countries in the region, in terms of simplifying regulations and improving the governance of public companies so as to foster the business environment," she indicated.
On the other hand, the OECD warned that there are domestic risks, in addition to global ones, for the Peruvian economy. These include political uncertainty due to the 2026 general elections, as well as a possible increase in citizen insecurity.
"Reforms are needed to improve public spending, increase tax revenues, and have the fiscal space necessary to meet social and productive demands," the institution noted.
"Reducing informality will also be essential to increasing productivity and reducing inequalities. In this regard, reforms are needed, such as improving the education (sector), simplifying tax regimes for small businesses, and reducing labor costs," it pointed out.