Peru - Country Commercial Guide
Investment Climate Statement

This information is derived from the State Department's Office of Investment Affairs' Investment Climate Statement.

Last published date: 2021-10-08

The U.S. Department of State Investment Climate Statements provide information on the business climates of more than 170 economies and are prepared by economic officers stationed in embassies and posts around the world. They analyze a variety of economies that are or could be markets for U.S. businesses.

Topics include Openness to Investment, Legal and Regulatory systems, Dispute Resolution, Intellectual Property Rights, Transparency, Performance Requirements, State-Owned Enterprises, Responsible Business Conduct, and Corruption.

These statements highlight persistent barriers to further U.S. investment. Addressing these barriers would expand high-quality, private sector-led investment in infrastructure, further women’s economic empowerment, and facilitate a healthy business environment for the digital economy. To access the ICS, visit the U.S. Department of State Investment Climate Statement website.

Executive Summary

The government of Peru (GOP)’s sound fiscal management and support of macroeconomic fundamentals contributed to the country’s region-leading economic growth since 2002. However, the COVID-19 pandemic caused a severe economic contraction of over 11% in 2020. In response, the GOP implemented a $39.5 billion stimulus plan in July 2020, which amounted to 19% of GDP. To finance the increased spending, the annual deficit grew to 8.9% of GDP in 2020, but the Ministry of Economy and Finance (MEF) projects that it will stabilize to 4.8% of GDP in 2021. GOP’s debt as a percentage of GDP increased from 26.8% in 2019 to 35% in 2020. Peru’s COVID-19 response and the perseverance of its macroeconomic stability led the IMF to project that Peru will grow its GDP by 8.5% in 2021, the highest growth forecast in the region. Net international reserves remained strong at $73.9 billion, and inflation averaged 1.8% in 2020. Private sector investment comprised more than two-thirds of Peru’s total investment in 2020.

Peru fosters an open investment environment, which includes strong protections for contractual rights and property. Peru is well integrated in the global economy including with the United States-Peru Trade Promotion Agreement (PTPA), which entered into force in 2009. Through its investment promotion agency ProInversion, Peru seeks foreign investment in its infrastructure sector and free trade zones. Prospective investors would benefit from seeking local legal counsel in navigating Peru’s complex bureaucracy.