PRIVATE INVESTMENT AND ECONOMIC RECESSION IN PERU: A SYSTEMATIC REVIEW

Abstract

 Aim: This study aimed to assess the key factors contributing to the decline in private investment in Peru and to explore the impact of the country's economic recession. Methods: A mixed-methods approach with a non-experimental design was employed, adhering to PRISMA guidelines for the article review. The selected articles, published between 2015 and 2023, were sourced from journals indexed in SCIELO, Web of Science, and Scopus. Data were gathered from the Central Reserve Bank of Peru (BCRP) and the National Institute of Statistics and Informatics (INEI). Results: The findings revealed a significant decline in private investment in Peru over the past six years. Factors contributing to this decline include political instability, diminished business confidence, challenges in the ease of doing business, social unrest, and institutional and organisational instability. This contraction in private investment has exacerbated the economic recession, resulting in detrimental effects on economic growth and employment figures. Practical Implications: For Peru's economic recovery, the establishment of stable political institutions and robust economic foundations is crucial to restoring business confidence, which is essential for stimulating private investment growth. Originality/Value: This review integrates literature examining the impact of private investment on economic recessions in Peru, while identifying research gaps and proposing that future studies focus on the regional dynamics between public investment and economic growth.