Economic Overview

In the context of robust economic growth spanning the past 25 years, Peru has encountered numerous setbacks in recent years. Peru experienced an economic downturn as its GDP declined in the first and second quarters of 2023, attributed to decreased private investment and consumption, possibly stemming from protests and increased political uncertainties. Additionally, vital sectors such as agriculture, construction, and fishing were adversely affected by climatic events. The latest projections from the Banco Central de Reserva del Perú (BCRP) pointed to a negative growth of 0.5% in 2023, while projecting an annual growth rate of 3% over 2024/25 thanks to the recovery of some key industries, including agriculture.

The fiscal deficit was projected to increase to 2.1% of GDP in 2023, primarily driven by a significant decrease in fiscal revenues, which outweighs a lesser reduction in expenditures. The decline in revenues is largely attributed to lower economic growth and copper prices. Meanwhile, expenditures have decreased due to the winding down of pandemic-related spending, despite higher salaries, and the implementation of Con Punche Peru and measures to address climatic events. The IMF anticipates the deficit to decrease to 1.9% in 2024 and 1.6% in 2025, as revenues increase with the resurgence of economic activity, while current spending remains inflexible amidst the delicate political equilibrium. Fiscal discipline has allowed Peru to keep the public debt-to-GDP ratio at a low level: it stood at 33.9% as of 2023, and is expected to remain stable over the forecast horizon. Data from the Banco Central de Reserva del Perú pointed to an inflation rate averaging 3% in 2023 (compared to 8.5% one year earlier), with rate gradually returning towards the 2% target by 2025.

Although the unemployment rate in Peru doubled during the early stages of the pandemic, unemployment has been decreasing and, in 2023, stood at 7.6%. According to IMF estimates, the country's unemployment rate is expected to remain stable in 2024 and 2025, at 7.4% and 7.3%, 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 27.5% (World Bank). There are serious regional disparities in poverty throughout the country, with the highest numbers being in the Andean and Amazonian regions.

Foreign Trade

Peru is a member of the WTO and very open to international trade, which represents 58% of GDP. The country mainly exports copper (27.4%), gold (12.7%), petroleum gas (5.3%), petroleum oils (4.1%), and flours of meat (3.1%); while it imports petroleum oils (17.3%), motor vehicles (3%), telephone sets (2.7%), motor vehicles for the transport of goods (2.4%), and maize or corn (2.1% - data Comtrade 2022).

In 2022, the country's main export partners were China (30.1%), the United States (14.5%), Japan (4.9%), Canada (4.5%), and South Korea (4.5%), as imports came chiefly from China (26.1%), the United States (23.7%), Brazil (7.0%), Argentina (5.0%), and Mexico (3.3% - data Comtrade). 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 2022, exports of goods increased to USD 61.3 billion (+2.7% y-o-y), but imports increased at a faster pace (+19.7% y-o-y) and reached USD 60.9 billion. According to the WTO, imports of services in 2022 totalled USD 13.6 billion, while exports stood at USD 4.9 billion. Peruvian exports, as of the end of 2023, saw an increase (+1.1%) and hit a new historical high, reaching USD 64.355 billion. This growth was propelled by the expansion of mining exports (+11.4%) and agro-industrial exports (+9.2%). At the close of 2023, Peruvian imports totaled USD 51,962.9 million, reflecting a 13.6% decrease compared to 2022, a year marked by record-high imports in Peru (data SUNAT).

COVID-19 Country Response

Travel restrictions

Regularly updated travel information for all countries with regards to Covid-19 related entry regulations, flight bans, test and vaccines requirements is available on TravelDoc Infopage.
To find information about the current travel regulations, including health requirements, it is also advised to consult Travel Regulations Map provided and updated on a daily basis by IATA.

Import & export restrictions

A general overview of trade restrictions which were adopted by different countries during the COVID-19 pandemic is available on the International Trade Centre's COVID-19 Temporary Trade Measures webpage.

Economic recovery plan

For the general overview of the key economic policy responses to the COVID-19 pandemic (fiscal, monetary and macroeconomic) undertaken by the government of Peru, please consult the country's dedicated section in the IMF’s Policy Tracker platform.

Support plan for businesses

For an evaluation of impact of the Covid pandemic on SMEs and an inventory of country responses to foster SME resilience, refer to the OECD's SME Covid-19 Policy Responses document.
You can also consult the World Bank's Map of SME-Support Measures in Response to COVID-19.