Country Highlights

Peru: Its Challenges and Opportunities

While Peru offers a growing economy and many opportunities, there are also some challenges for foreign companies to be aware of. On the challenge side, navigating Peru’s bureaucracy can be difficult due to red tape and inefficient processes. Obtaining licenses, permits, and completing customs procedures often requires significant paperwork and time. The tax system is also complex, with corporate income tax at 29.5% along with other levies.

Foreign exchange controls, inflation, and currency volatility also present risks. However, Peru has implemented more stable macroeconomic policies in recent decades. Access to financing can also be challenging outside of Lima, where most capital is concentrated.

That said, Peru offers sizable opportunities that many foreign businesses have successfully tapped into. Key sectors with potential include mining, infrastructure, agriculture, renewable energy, and tourism. Mining investment is encouraged through tax stability agreements. The government is also making large investments to expand infrastructure like roads, ports, and airports through public-private partnerships.

Foreign businesses in Peru face both challenges and opportunities. Peru has one of the fastest-growing economies in Latin America, driven by increased private investment, modernization, and development. The country offers a favorable but complex legal framework for foreign investment, as reflected in its ranking of 58th in the World Bank Ease of Doing Business Survey. However, starting a business in Peru is a bureaucratic process, taking around 27 days and seven procedures, and the country ranks 114th in the ease of doing business index.

The main industries in Peru include mining, manufacturing, energy, petrochemical, tourism, and real estate, presenting opportunities for foreign businesses to invest in these sectors.

Despite the opportunities, foreign businesses in Peru also encounter various challenges. The country faces political instability, corruption, and social conflict, which have led to a downgrade in its sovereign credit ratings. Peru has experienced five presidents since 2020, and there is a high level of contentiousness between various branches and independent bodies at the national level. Corruption is a major problem, with Peru ranking 101st out of 180 countries in Transparency International’s 2022 Corruption Perceptions Index. Resolving disputes with the government can be difficult, as the judicial system is often slow and inconsistent in its rulings and enforcement. Additionally, Peru’s complex bureaucracy and legal structure can pose challenges for foreign businesses.

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Featured Reports

Understand the macroeconomic situations that affect the global positioning of countries.

Businesses can better understand how chatbots can advocate their vision.

DeFi helps reduce dependency on traditional methods of transactions.

Creating a sustainable environment for driving multiple countries into a better tomorrow.

Understand how the U.S. discrepancy in accordance to their debt creates a havoc. 

Sustainable blockchain technology has immense benefit for the environment which cannot go unnoticed.