Peru consolidates itself as the main destination for Chilean investment in Latin America.

The Peruvian market has begun to stand out in the investment landscape of Latin America, becoming the main destination for Chilean investment in the region. This notable shift in trend reflects the growing confidence of Chilean entrepreneurs in the economic potential of Peru. According to a report from the Chilean Ministry of Foreign Affairs, Chilean investment in the Andean country reached $7.203 billion in the first half of this year, thus consolidating a commercial link that strengthens daily. More than 280 Chilean companies have established operations in different regions of Peru, covering a total of nine departments. This phenomenon not only implies a commercial exchange but also represents a commitment to local economic development, where Chilean companies have adapted to the dynamics of the Peruvian market, offering products and services that benefit the population. As Brazil and Argentina lose their appeal as investment destinations, Peru is positioning itself as a solid and reliable alternative. The commercial relationship is not limited to investment; it also extends to the exchange of goods. Currently, 47% of Chilean exports to Peru are concentrated in just 25 products, indicating a significant dependence in certain areas. Despite this success, some Chilean agro-industrial entrepreneurs have expressed concerns about possible changes in the rules of the game that could arise after the 2021 elections, which has generated some uncertainty in the investment climate. In the exchange rate arena, the exchange rate has experienced significant fluctuations, reaching S/. 2.817, with projections indicating a possible increase to S/. 2.85 in October. This situation has raised eyebrows among banking entities, especially regarding the exchange management by the Central Reserve Bank of Peru (BCR), which has been buying dollars to maintain the price above S/. 2.80. This dynamic has led Pension Fund Administrators (AFP) to accumulate a considerable amount of foreign currency in their coffers. However, the story is not always optimistic. Five years ago, a report revealed that 74% of executives had a negative perception of the economic future in the event of early elections. This figure reflected a level of pessimism that affected business confidence and investment decisions. As the election date approached, concerns about political and economic stability intensified. The economic context in 2019 was complex, with projected growth of only 2.2% and the possibility of a weak start for the following year. Surveys showed a division among executives: 51% opposed early elections, while 49% were in favor. This tie in opinions indicated a climate of uncertainty that complicated strategic decision-making for the future. Today, the landscape is markedly different. While political concerns still persist, the attraction of Chilean investment in Peru has proven to be a key factor for economic stability. Chilean companies are not only investing capital but also generating employment and promoting the development of strategic sectors in the country. As commercial relations strengthen, economic interdependence between both nations also increases. In summary, as of August 19, 2023, Peru has established itself as an attractive destination for Chilean investments, something that seemed distant just a few years ago. Confidence in economic growth and political stability could continue to attract foreign capital in the future, although it will always be prudent to remain vigilant to changes in the political and economic environment that may arise. Constant evaluation and adaptation to new realities will be essential for continuing to build a favorable investment environment in Peru.