Peru experienced a dramatic foreign investment decline during 2013 and 2015. Data from greenfield investment monitor fDi Markets recorded a total of 128 projects in the three-year period, excluding retail. These projects represent a total capital investment of $12.44bn, and a total of 23,477 jobs were created.
The country attracted 60 FDI projects in 2013, which declined by 28.33% during 2014 and decreased further by 41.86% in 2015. Capital expenditure also experienced a year-on-year downward trend between January 2013 and December 2015. In 2013, Peru captured $5.72bn, which declined by 6.9% in 2014. By 2015, capex has decreased further by a staggering 73.66%. The country managed to create 14,257 jobs in 2013 which drastically dropped to 63.85%.
Between 2014 and 2015, jobs declined further by 21.12%. The top destination city for investment was Lima, which held a market share of 35.95% between 2013 and 2015. Callao followed with a 3.91% market share and Arequipa ranked third with a 2.34% market share. Spain was the top source country with 39 projects. The US came in second with 23 projects and Chile was third with 11.
Full data for 2016 will not be available until November, but figures demonstrate the country has already broken the downward cycle. Between January and November of 2016, 41 projects were recorded, representing an increase of 64% when compared to the same time period in 2015. Capex increased by 56.01% and job creation by 84.21%.