Andina

Infrastructure, mining projects add to Peru's business attractiveness

COP20 Centro Financiero Lima San Isidro Surco

19:05 | Lima, Jul. 10.

Peru remains an attractive investment destination by reason of its infrastructure and mining project portfolio, as well as its macroeconomic stability, Lima Chamber of Commerce (CCL) affirmed on Monday.

CCL Institute of Economics and Business Development (IEDEP) Director Cesar Peñaranda noted Peru's infrastructure deficit (US$120 billion) following Coastal El Niño phenomenon disasters, as well as its mining project portfolio (US$50 billion) open up major opportunities.

Peñaranda estimated the Reconstruction with Changes process and investments projected by State-run Private Investment Promotion Agency (ProInversion) —if realized— would spur public and private investments. 

"We can start reversing the [negative] investment trend next year, which will lead to growth at a faster pace," the officer told Andina news agency.

"That's what Moody's highlights, and it is also what has been underlined quite a lot in the international market," he added.

The CCL officer assured Peru is prepared to fund the said reconstruction, as it relies on the Fiscal Stabilization Fund and a highly liquid local financial market.

Mining projects

Peñaranda observed large-scale mining ventures' feasibility could benefit from a boost to the Social Pre-Payment Fund (investing in basic infrastructure for populations settled in mines influence area) and a proper social dialogue. 

He also stressed Peru's macroeconomic policy, which "mirrors an adequate monetary and foreign exchange policy" while also guaranteeing "low inflation."

Growing exports

Lastly, the CCL-IEDEP head indicated the global demand rebound has translated into a rise in Peruvian exports, which in turn has helped offset weaker public and private investment. 

"Peruvian exports expanded 9.7% last year and are expected to increase 6.8% this year, which is allowing —to a certain extent— the economy to grow more than 2%," he concluded. 

(END) MDV/DHT/MVB

Published: 7/10/2017