Andina

IDB: Peru attracts more investments

00:00 | Lima, Jul. 30.

Peru's prudent fiscal and monetary systems —which have clear objectives— contribute to drawing investments into different sectors, Inter-American Development Bank (IDB) Research Department Principal Advisor Andrew Powell affirmed.

According to Powell, Peru is very well positioned. Likewise, it relies on a prudent fiscal system, as well as a stable monetary system with clear and transparent goals.

Based on State-run Private Investment Promotion Agency's (ProInversion) figures, sectors that received the most Foreign Direct Investment (FDI) were mining (US$5.648 billion), communications (US$5.324 billion), and finance (US$4.695 billion).

Other sectors such as energy (US$3.446 billion) and industry (UUS$3.218 billion) also stood out in this sense.

It must be noted Spain ranks as the top country that moved capital into Peru (US$4.522 billion), followed by the United Kingdom (US$4.336 billion), Chile (US$3.402 billion), and the United States (US$3.193 billion), among other countries.

Nevertheless, following Anglo American company's announcement to implement Quellaveco copper project —whose investment exceeds US$5 billion— the United Kingdom will become Peru's largest foreign investor.

Growth

On the other hand, Powell pointed out growth forecasts for the Andean nation are quite solid.

According to IDB estimates, Peru's GDP will expand by 4% this year as the world economy grows by 3.9%. 

Furthermore, the Central Reserve Bank (BCR) has recently announced its current Peru 2018 growth projection (4%) may be revised upwards due to an increase in investment and consumption.

Lastly, the Economy and Finance Ministry (MEF) has reported it will raise its projections.

(END) MDV/MDV/JAA/MVB

Published: 7/30/2018