Private investment boosts optimism in the Peruvian economy: a remarkable revival.

Private investment in Peru has experienced a notable resurgence in recent times, as highlighted by the Chief Economist for Latin America at Citi Bank, Ernesto Revilla. In a regional context where uncertainty and changes in the rules of the game continue to pose a risk, the Andean country stands out as an exceptional case of optimism and dynamism in terms of investment. With projects such as the start of the Chancay port and the announced award of the Tía María mining project, the economic outlook for Peru is seen with greater optimism. Revilla has pointed out that this resurgence of private investment in Peru is the basis upon which optimism is built for the future of the Peruvian economy. The combination of favorable external factors, such as the increase in copper and gold prices, could potentiate a virtuous circle that benefits the Andean country above other nations in the region. In fact, the economist himself highlights that there is no clearer example of dynamism in private investment in the region than what is currently being experienced in Peru. Growth projections for the Peruvian economy are encouraging, with an estimated 2.4% for this year and an upward bias that could further improve these figures. By 2025, a growth of 2.9% is expected, reflecting confidence in the economic recovery that is already beginning to be evident in the first quarter data and second quarter advancements. Additionally, inflation in Peru remains extraordinarily controlled compared to other countries in the region, contributing to strengthening economic stability. Despite these positive indicators, Revilla acknowledges that there are risks that still loom over the country's economic outlook. In this sense, he points out that uncertainty and changes in the rules of the game, especially in the political scenario, are the main risk factors identified by the market. However, the economist emphasizes that the market interprets that such uncertainty is contained and is confident that recent reforms to the political system, such as the creation of a second chamber in the Legislative branch and the possibility of reelection, could improve political stability in Peru. Although political noise continues to be a factor of concern for investors, confidence in Peru's economic potential remains strong. As long as economic variables are not directly affected by political instability, the market continues to place its confidence in the Andean country. The long-term outlook is optimistic, and it is expected that forecasts will reflect this increased optimism in the near future. With the boost from private investment and macroeconomic stability, Peru positions itself as a key player in the economic recovery of the region.