Peru's Resilient Business Climate Amid Political Uncertainty

Peru's business climate, though shadowed by political uncertainty ahead of the 2026 election, reveals a compelling narrative of resilience and opportunity. Despite the volatility, sustained business confidence—driven by strategic investments in infrastructure and energy—signals a window for investors to capitalize on undervalued assets and long-term growth. With a 3.3% GDP growth in 2024Peru Overview: Development news, research, data^[1] and a $70 billion pipeline of public-private partnerships (PPPs) for 2025–2026Peru promotes projects worth US$70 billion at international...^[2], the country is positioning itself as a regional hub for transformative development.

Political Context and Macroeconomic Stability

Political instability has long been a challenge for Peru, but recent trends suggest a tentative return to stability. According to a 2025 IMF Article IV Consultation report, “some level of stability has returned since 2024,”Peru promotes projects worth US$70 billion at international...^[2] even as the nation navigates the lead-up to the 2026 election. This stability has bolstered business confidence, with the economy expanding on the back of robust private consumption and mineral exportsPeru Overview: Development news, research, data^[1]. However, the fragmented political landscape and potential delays in structural reforms remain risksGuide to investing in infrastructure projects in Peru 2024...^[3].

Infrastructure: A Catalyst for Growth

Peru's infrastructure sector is a cornerstone of its economic revival. The World Bank Group's $2.78 billion portfolio in the country includes 14 investment projects focused on transport, water, and electricity transmissionPeru Overview: Development news, research, data^[1]. ProInversión, the state agency overseeing infrastructure, is advancing critical projects such as the Choquequirao Cable Car ($261 million investment) and the Lima-Ica high-speed rail ($6.5 billion), which will enhance tourism and regional connectivityPeru promotes projects worth US$70 billion at international...^[2]Projects that will transform Peru's infrastructure to gain weight...^[5]. By 2025, over 6,500 kilometers of roads will be rehabilitated, and the rail network will double under the National Railway PlanPeru promotes projects worth US$70 billion at international...^[2].

Public-private partnerships are central to this push. The 2025–2026 period includes plans to award 34 projects worth $8.8 billion, including the Ancón Industrial Park and the Longitudinal de la Sierra Section 4 highwayPeru promotes projects worth US$70 billion at international...^[2]. These projects are supported by Peru's favorable legal framework, including free trade agreements and a stable regulatory environmentGuide to investing in infrastructure projects in Peru 2024...^[3].

Energy Sector: Balancing Access and Sustainability

The energy sector is another focal point for growth. The World Bank has committed over $100 billion globally to energy projects over the past decade, with Peru benefiting from initiatives like the 500 kV Chilca CTM-Carabayllo transmission line and the Bicentenario substation, which aim to strengthen the national gridPeru Overview: Development news, research, data^[1]Energy Overview: Development news, research, data^[4]. These efforts align with Peru's sustainable development goals, emphasizing energy affordability and emissions managementEnergy Overview: Development news, research, data^[4].

International support is critical. The World Bank's energy portfolio in Peru includes projects to improve access and efficiency, while the government's focus on formalizing the mining sector—such as banning illegal gold mining—may reshape energy output and mineral exportsPeru Overview: Development news, research, data^[1].

Challenges and Strategic Opportunities

Political uncertainty, particularly around the 2026 election, poses risks to long-term planning. A report by Allianz Trade notes that “political instability and the threat of impeachment proceedings create a challenging environment for sustained development,”Peru Overview: Development news, research, data^[1] yet Peru's macroeconomic fundamentals—low public debt, stable inflation, and significant foreign reserves—provide a bufferPeru Overview: Development news, research, data^[1].

For investors, this duality presents an opportunity. Undervalued assets in infrastructure and energy, coupled with Peru's strategic ties to China and fiscal discipline, offer a compelling case for entry. The Chancay Port Terminal, for instance, is projected to contribute significantly to GDP growthPeru Overview: Development news, research, data^[1], while the $70 billion PPP pipeline underscores the scale of potential returnsPeru promotes projects worth US$70 billion at international...^[2].

Conclusion

Peru's infrastructure and energy sectors are poised for transformation, even as political uncertainties persist. With international backing, a robust PPP framework, and a resilient economy, the country offers a unique window for investors to secure undervalued assets and align with long-term growth. As the 2026 election approaches, strategic investments in Peru's backbone—its infrastructure and energy—could yield substantial rewards for those willing to navigate the political landscape with foresight.