Peru-Chile business council highlights US$32 billion bilateral investment stock as economic integration deepens

The XXI meeting of the Chile-Peru Business Council brought together over 40 corporate leaders at Lima’s Country Club Hotel, marking a renewed push for bilateral economic cooperation after pandemic-era dormancy. Guillermo Ferreyros, president of the Peruvian chapter, reported that bilateral investment between the two nations has reached more than US$32 billion, while annual trade totaled US$3.603 billion in 2025. Luis Felipe Gazitúa, heading the Chilean chapter, noted that commercial exchange has multiplied eightfold since the late 1990s, with Peru now ranking as the third-largest destination for Chilean foreign direct investment at US$4.548 billion accumulated, representing 13.3 percent of total FDI registered in Peru.

Finance Minister Elmer Cuba presented closed-door economic projections forecasting 3.4 percent GDP growth for 2026 and 2027, with private investment expanding 15.5 percent in the first half of the year compared to the prior period. Cuba identified three principal economic risks: El Niño weather patterns, rising international petroleum and diesel prices potentially fueling domestic inflation, and higher interest rates that could constrain financing for businesses and households. The minister emphasized that accelerating mining projects remains central to sustaining economic momentum, particularly as favorable mineral prices support both activity and wage growth.

Energy and Mining Minister Guillermo Shinno warned of looming electrical generation deficits in northern Peru, where inefficient capacity may force reliance on diesel machinery and drive tariff increases. Generation infrastructure concentrates in central and southern regions, creating transmission bottlenecks. Shinno indicated authorities are evaluating an emergency declaration to expedite a transmission line project scheduled for 2029, potentially advancing construction in segments to resolve pending permits. Small natural gas discoveries in the north may support thermal generation as an interim solution.

Shinno emphasized mining’s economic weight, accounting for 70 percent of Peruvian exports, 13.2 percent of GDP, and nearly 20 percent of tax revenues. Only 1.5 percent of Peru’s mining-concessioned territory currently sees active exploration or exploitation, suggesting substantial untapped potential. Sofofa President Rosario Navarro highlighted that both nations hold major reserves of critical minerals essential for energy transition, digital economy growth, and advanced technology, calling for progression from goods exchange to genuine productive integration. The council delivered a joint declaration to President Keiko Fujimori at the Government Palace, proposing private sector participation in binational cabinets and sustained government-business coordination with long-term focus.