Peru
News

Investment in Peru growing above expectations, on track to set new record

Bnamericas Published: Thursday, December 06, 2012
Investment in Peru growing above expectations, on track to set new record
Investment in Peru has been growing above expectations this year and is on track to set a new record at the end of the year, said the local banking unit of Canada's Scotiabank (NYSE: BNS) in a report. Gross investment reached 29% of GDP at the end of the third quarter, which is a level not seen since the 1980s, according to the report. The gross investment is made up of private and public investment as well as inventories - and has been mainly driven this year by private investment (by local and foreign firms). The high level of private investment has in turn been led by the mining sector (mainly foreign firms re-investing their earnings), a real estate boom that has been fueled by Peruvians' higher incomes, more access to mortgage loans and the country's housing deficit, said the report. Increased investment by local and regional governments has also had a positive effect on private sector investment, the report added. Foreign direct investment (FDI) represents about 25% of private investment in Peru today with the remainder being local investment. FDI amounted to US$2.82bn in 3Q12, up 41% on the same quarter last year. The Scotiabank unit noted that 82% of FDI in this year's third quarter was made up of re-invested earnings. The bank also predicted that Peru's FDI will for the first time ever surpass the US$10bn-mark this year. Peru is expected to be the fastest-growing among Latin America's major economies in 2012, with Scotiabank Peru forecasting GDP growth of 6.2%.

Subscribe to the most trusted business intelligence platform in Latin America. Let us show you our solutions for Suppliers, Contractors, Operators, Government, Legal, Financial and Insurance.

Subscribe to Latin America’s most trusted business intelligence platform.

Other projects in: Water & Waste (Peru)

Get critical information about thousands of Water & Waste projects in Latin America: what stages they're in, capex, related companies, contacts and more.

  • Project: Quellaveco
  • Current stage: Blurred
  • Updated: 1 week ago

Other companies in: Water & Waste (Peru)

Get critical information about thousands of Water & Waste companies in Latin America: their projects, contacts, shareholders, related news and more.

  • Company: Veolia Servicios Perú S.A.C.  (Veolia Perú)
  • Veolia Servicios Perú S.A.C. (Veolia Perú), a subsidiary of French Group Veolia, provides integrated environmental management services (water and waste). The company offers solu...