For the latest updates on the key economic responses from governments to address the economic impact of the COVID-19 pandemic, please consult the IMF's policy tracking platform Policy Responses to COVID-19.
An economic model country for the past two decades, Peru's growth peaked at an average of 6% between 2004 and 2012. Even though Peru faced economic difficulties in the past couple of years due to the pandemic, the country's economic situation has improved, with growth levels reaching an estimated 2.7% in 2022, mainly driven by a boost in domestic demand and household consumption. The Peruvian economy is expected to continue growing in the coming years, with the IMF predicting a GDP growth of 2.6% for 2023 and 3.2% for 2024.
Peru recorded a budget deficit of 2.8% of the GDP in 2022, a rate that's expected to remain somewhat stable in 2023 and 2024, at 2.6% and 2.3%. Inflation increased to 7.5% in 2022, but the Central Bank should tighten its monetary policy to get inflation rates to decrease the target of 2% in the coming years, with the IMF forecasting a decrease to 4.4% in 2023 and 2.5% in 2024. Furthermore, public debt decreased to 34.8% of GDP in 2022 and, although that rate is expected to slightly increase to 35.7% in 2023 and remain stable in 2024, Peru still has one of the lowest debt-to-GDP ratios of Latin America thanks to the prudential fiscal policy in force since the early 2000s. Although the pandemic has significantly impacted the Peruvian economy, the fiscal measures implemented by the government have been effective in boosting economic activity, which has been gradually recovering.
Although the unemployment rate in Peru doubled during the early stages of the pandemic, unemployment has been decreasing and, in 2022, it returned to pre-pandemic levels and reached an estimated 7.6% of the labour force. According to IMF estimates, the country's unemployment rate is expected to remain stable in 2023 and 2024, at 7.4% and 7.5%, respectively. However, the informal economy continues to employ a large part of the active population. Moreover, the country has high levels of inequality, with a significant concentration of wealth, and a poverty rate of 20.2%. About 7 million Peruvians now live in poverty, 44% of whom are in rural areas. There are serious regional disparities in poverty throughout the country, with the highest numbers being in the Andean and Amazonian regions.
|Main Indicators||2020||2021||2022 (E)||2023 (E)||2024 (E)|
|GDP (billions USD)||205.82||225.94||242.40||268.24||279.46|
|GDP (Constant Prices, Annual % Change)||-11.0||13.6||2.7||2.4||3.0|
|GDP per Capita (USD)||6,145||6,679||7,094||7,773||8,018|
|General Government Balance (in % of GDP)||-6.0||-3.7||-1.8||-2.2||-2.3|
|General Government Gross Debt (in % of GDP)||35.0||36.4||33.4||33.0||33.3|
|Inflation Rate (%)||1.8||4.0||7.9||5.7||2.4|
|Unemployment Rate (% of the Labour Force)||13.0||10.7||7.8||7.6||7.4|
|Current Account (billions USD)||2.45||-5.10||-10.89||-5.71||-6.31|
|Current Account (in % of GDP)||1.2||-2.3||-4.5||-2.1||-2.3|
Source: IMF – World Economic Outlook Database , Latest available data
Note: (e) Estimated Data
Peru’s varied geography is reflected in the country’s economy. The abundance of resources is found mainly in mineral deposits in the mountainous regions, while its extensive maritime territory has traditionally yielded excellent fishing resources. However, due to its complicated geographical features (such as the arid coast, the rugged Andes and the hard-to-reach jungle), Peru has a rather small agricultural area, which occupies only 1.7% of the territory. Still, the sector is fairly significant compared to the size of the country's arable land. Agriculture contributes to 7% of Peru's GDP and employs 27.4% of the active population. The country’s main agricultural products are cotton, sugarcane, coffee, wheat, rice, maize, quinoa, and barley. Peru is also one of the world's leading exporters of artichokes, mangoes, citrus, avocado, and grapes. In 2022, Peruvian agricultural sector recorded a significant growth, mainly due to an increased production of bananas, corn, potato, and mango, among others.
The industry sector generates 35% of the GDP, employing 15.2% of the active population. Peru has a large and dynamic mining industry, mainly for copper and gold extraction. Peru has been a mining economy since colonial times, and the country is the world’s top producer of silver, the fifth producer of gold, the second producer of copper, and an important supplier of zinc and lead. Large mining has begun during the past years, which increased even more the importance of the mining sector. The country also has large reserves of natural gas and oil, although Peru is a net energy importer. The main manufacturing activities are textiles, consumer goods, food processing and fish products. Furthermore, although the Peruvian government has tried to disperse industrial production, the country's main industries are within the greater Lima area. In 2022, the industry sector continued seeing a significant recovery from the impact of the COVID-19 pandemic, bolstered by soaring growth in one of Peru's key sectors: mining.
The tertiary sector contributes 49.2% of the GDP and employs 57.4% of the workforce. The sector consists of tourism, financial services and telecommunication, all of which have boomed due to a combined effort from both the government and private sector. The tourism and construction sectors, particularly, are very well developed. Although the services sector was hit the hardest during the pandemic, it showed a significant recovery in 2022, especially in tourism, hotels, restaurants, transport, and entertainment.
|Breakdown of Economic Activity By Sector||Agriculture||Industry||Services|
|Employment By Sector (in % of Total Employment)||27.4||15.2||57.4|
|Value Added (in % of GDP)||7.0||35.0||49.2|
|Value Added (Annual % Change)||3.7||16.4||11.8|
Source: World Bank - Latest available data.
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|Peruvian Nuevo Sol (PEN) - Average Annual Exchange Rate For 1 MUR||0.09||0.09||0.10||0.09||0.09|
Source: World Bank - Latest available data.
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The Economic freedom index measure ten components of economic freedom, grouped into four broad categories or pillars of economic freedom: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labour freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom). Each of the freedoms within these four broad categories is individually scored on a scale of 0 to 100. A country’s overall economic freedom score is a simple average of its scores on the 10 individual freedoms.
The business rankings model measures the quality or attractiveness of the business environment in the 82 countries covered by The Economist Intelligence Unit’s Country Forecast reports. It examines ten separate criteria or categories, covering the political environment, the macroeconomic environment, market opportunities, policy towards free enterprise and competition, policy towards foreign investment, foreign trade and exchange controls, taxes, financing, the labour market and infrastructure.
Peru is a member of the WTO and very open to international trade, which represents 55.5% of GDP. The country mainly exports copper (31.2%), gold (13.7%), petroleum oils (3.3%), flours (3.2%), and petroleum gas (3%), while it imports petroleum oils (11.7%), motor vehicles (5.5%), telephone sets (3.6%), automatic data processing machines and units (2.6%), and maize (2.2%).
The country's main trade partners are China, the United States, Brazil, South Korea, Japan, Canada, Argentina, and Mexico. Peru's development strategy is based on an open and competitive economy. Trade agreements, in particular, are one of the government's main targets, as these agreements are a valuable instrument for attracting FDI and boosting productivity. Nearly 95% of Peru's exports are covered by Free Trade Agreements currently in force, which enables Peruvian products to enter, subject to the rules of origin of each trade agreement, under preferential conditions to 53 countries, including Canada, Chile, China, the member countries of the European Union, Japan, Singapore, South Korea, Thailand and the United States, among others. The country is seeking to position itself as a regional hub for trade between Latin America and the APEC countries (Asia-Pacific Economic Cooperation).
Peru has a structurally positive trade balance. In 2021, exports of goods increased to USD 59.4 billion, mainly due to a boost in global demand following the pandemic. Over that same period, imports also increased, totalling USD 50.8 billion. According to the WTO, imports of services in 2021 totalled USD 10.2 billion, while exports stood at USD 2.9 billion. As a result, the country recorded a positive trade balance of USD 7.4 billion in 2021. In recent years, there was a surge in mining production, as projects implemented during the previous years matured, which increased exports and offset the deceleration in domestic demand.
|Foreign Trade Indicators||2017||2018||2019||2020||2021|
|Imports of Goods (million USD)||39,885||43,262||42,284||36,129||50,871|
|Exports of Goods (million USD)||45,422||49,068||47,690||42,411||59,443|
|Imports of Services (million USD)||8,657||9,676||10,540||7,319||10,294|
|Exports of Services (million USD)||7,232||6,925||7,435||3,238||2,947|
|Imports of Goods and Services (Annual % Change)||7.1||3.5||1.7||-15.4||25.1|
|Exports of Goods and Services (Annual % Change)||8.8||3.4||0.3||-18.2||17.1|
|Imports of Goods and Services (in % of GDP)||22.8||23.4||22.9||21.1||26.4|
|Exports of Goods and Services (in % of GDP)||24.7||25.2||24.0||22.4||29.1|
|Trade Balance (million USD)||6,704||7,201||6,879||8,196||14,833|
|Trade Balance (Including Service) (million USD)||3,995||3,819||2,898||3,531||7,486|
|Foreign Trade (in % of GDP)||47.5||48.6||46.9||43.5||55.5|
Source: WTO – World Trade Organisation ; World Bank , Latest Available Data
(% of Exports)
|See More Countries||40.4%|
(% of Imports)
|See More Countries||37.8%|
Source: Comtrade, Latest Available Data
|56.3 bn USD of products exported in 2021|
|Copper ores and concentratesCopper ores and concentrates||27.1%|
|Gold, incl. gold plated with platinum, unwrought...Gold, incl. gold plated with platinum, unwrought or not further worked than semi-manufactured or in powder form||13.7%|
|Copper, refined, and copper alloys, unwrought ...Copper, refined, and copper alloys, unwrought (excl. copper alloys of heading 7405)||4.1%|
|Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals||3.3%|
|Flours, meals and pellets, of meat or meat offal,...Flours, meals and pellets, of meat or meat offal, of fish or of crustaceans, molluscs or other aquatic invertebrates, unfit for human consumption; greaves||3.2%|
|See More Products||48.6%|
|51.2 bn USD of products imported in 2021|
|Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals||8.1%|
|Telephone sets, incl. telephones for cellular...Telephone sets, incl. telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, incl. apparatus for communication in a wired or wireless network [such as a local or wide area network]; parts thereof (excl. than transmission or reception apparatus of heading 8443, 8525, 8527 or 8528)||3.6%|
|Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals, crude||3.6%|
|Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702)||2.8%|
|Motor vehicles for the transport of goods, incl....Motor vehicles for the transport of goods, incl. chassis with engine and cab||2.7%|
|See More Products||79.2%|
Source: Comtrade, Latest Available Data
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|7.4 bn USD of services exported in 2018|
|Personal travelPersonal travel||53.60%|
|9.9 bn USD of services imported in 2018|
|Personal travelPersonal travel||26.97%|
Source: United Nations Statistics Division, Latest Available Data
- Free Peru (PL): left-wing to far-left, socialism, Marxism
- Popular Force (FP): right-wing, fujimorism, conservatism, right-wing populism
- Popular Renewal (RP): right-wing to far-right, social conservatism, economic liberalism, anti-immigration
- Popular Action (AP): centre to centre-right, reformism, nationalism, paternalistic conservatism
- Alliance for Progress (APP): centre-right, conservative liberalism, progressivism, populism
- Go on Country – Social Integration Party (AvP): centre-right to right-wing, liberal conservatism, economic liberalism
- Together for Peru (JP): centre-left to left-wing, democratic socialism, progressivism
- Podemos Peru (PP): centre-right to right-wing, social conservatism, populism, protectionism
- We Are Peru (SP): centre-right, social conservatism, Christian democracy, Christian humanism
The world rankings, published annually, measures violations of press freedom worldwide. It reflects the degree of freedom enjoyed by journalists, the media and digital citizens of each country and the means used by states to respect and uphold this freedom. Finally, a note and a position are assigned to each country. To compile this index, Reporters Without Borders (RWB) prepared a questionnaire incorporating the main criteria (44 in total) to assess the situation of press freedom in a given country. This questionnaire was sent to partner organisations,150 RWB correspondents, journalists, researchers, jurists and human rights activists. It includes every kind of direct attacks against journalists and digital citizens (murders, imprisonment, assault, threats, etc.) or against the media (censorship, confiscation, searches and harassment etc.).
The Indicator of Political Freedom provides an annual evaluation of the state of freedom in a country as experienced by individuals. The survey measures freedom according to two broad categories: political rights and civil liberties. The ratings process is based on a checklist of 10 political rights questions (on Electoral Process, Political Pluralism and Participation, Functioning of Government) and 15 civil liberties questions (on Freedom of Expression, Belief, Associational and Organizational Rights, Rule of Law, Personal Autonomy and Individual Rights). Scores are awarded to each of these questions on a scale of 0 to 4, where a score of 0 represents the smallest degree and 4 the greatest degree of rights or liberties present. The total score awarded to the political rights and civil liberties checklist determines the political rights and civil liberties rating. Each rating of 1 through 7, with 1 representing the highest and 7 the lowest level of freedom, corresponds to a range of total scores.
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Latest Update: September 2023