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Economic Overview

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 20222023 (E)2024 (E)2025 (E)2026 (E)
GDP (billions USD) 244.59264.64277.16291.09305.72
GDP (Constant Prices, Annual % Change)
GDP per Capita (USD) 7,1597,6697,9528,2698,599
General Government Balance (in % of GDP) -2.0-2.1-1.9-1.6-1.2
General Government Gross Debt (in % of GDP) 34.333.934.033.532.7
Inflation Rate (%) n/a6.
Unemployment Rate (% of the Labour Force)
Current Account (billions USD) -9.91-5.08-5.89-5.01-4.80
Current Account (in % of GDP) -4.1-1.9-2.1-1.7-1.6

Source: IMF – World Economic Outlook Database , October 2021

Country Risk

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Main Sectors of Industry

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) 27.9 17.0 55.1
Value Added (in % of GDP) 7.2 34.8 49.4
Value Added (Annual % Change) 3.0 1.3 3.3

Source: World Bank - Latest available data.

Monetary Indicators 20162017201820192020
Peruvian Nuevo Sol (PEN) - Average Annual Exchange Rate For 1 USD 3.383.263.293.303.49

Source: World Bank - Latest available data.



Foreign Trade

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 Values 20182019202020212022
Imports of Goods (million USD) 43,26242,28436,14050,89160,958
Exports of Goods (million USD) 48,01946,44439,60059,64861,309
Imports of Services (million USD) 9,76510,6807,57910,71813,604
Exports of Services (million USD) 6,3836,6962,7182,9474,962

Source: World Trade Organisation (WTO) ; Latest available data

Foreign Trade Indicators 20182019202020212022
Foreign Trade (in % of GDP) 48.646.943.856.058.4
Trade Balance (million USD) 7,2016,8798,10214,97710,333
Trade Balance (Including Service) (million USD) 3,8192,8953,2417,2061,691
Imports of Goods and Services (Annual % Change) 3.51.7-15.426.34.2
Exports of Goods and Services (Annual % Change) 3.40.3-16.419.25.9
Imports of Goods and Services (in % of GDP) 23.422.921.126.529.1
Exports of Goods and Services (in % of GDP)

Source: World Bank ; Latest available data

Foreign Trade Forecasts 2023 (e)2024 (e)2025 (e)2026 (e)2027 (e)
Volume of exports of goods and services (Annual % change)
Volume of imports of goods and services (Annual % change) -

Source: IMF, World Economic Outlook ; Latest available data

Note: (e) Estimated Data

International Economic Cooperation
Andean Community of Nations
The free trade treaty with the United States came into force in February 2009.
Peru signed a Free Trade Agreement with China.
Peru signed a Free Trade Agreement with the European Free Trade Association (EFTA).
Peru is part of the Pacific Alliance.

Main Partner Countries

Main Customers
(% of Exports)
China 32.0%
United States 12.8%
South Korea 5.0%
Japan 4.9%
Canada 4.9%
See More Countries 40.4%
Main Suppliers
(% of Imports)
China 28.6%
United States 18.7%
Brazil 6.7%
Argentina 4.5%
Mexico 3.7%
See More Countries 37.8%

Source: Comtrade, Latest Available Data



Political Outline

Current Political Leaders
President: Dina Boluarte (since 7 December 2022)
Vice President: Vacant (since 7 December 2022)
Prime Minister: Alberto Otárola (since 21 December 2022)
Next Election Dates
Presidential: 2026
Congress of the Republic of Peru: 2026
Main Political Parties
Peru has a multi-party system and it is difficult for a single political party to secure an absolute majority in the Congress. Thus, political groups often work with each other to form coalition alliances consisting of smaller parties. The main parliamentary forces to secure above 10 seats the country are:

- 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

Executive Power
The President is the chief of the state and head of the government, the commander-in-chief of the armed forces, and holds executive powers, which include the implementation of the law and running the day-to-day affairs of the country. The President is elected by popular vote for a five-year term (not eligible for an immediate re-election) and appoints the Council of Ministers (cabinet) and the Prime Minister to serve for five-year terms as well. All Presidential decree laws or draft bills sent to parliament must be approved by the Council of Ministers. The first and second vice presidents are also popularly elected, but have no constitutional functions, unless the president is unable to discharge his duties.
Legislative Power
The legislature is unicameral. The parliament - called Congress - consists of 130 seats, with its members elected by popular vote to serve five-year terms. Congress ratifies treaties, authorises government loans, and approves the government budget. The President has the power to veto acts of the legislature, and, in turn, a supermajority (generally two-thirds majority) of legislators may act to override the veto. The president has the power to block legislation with which the executive branch does not agree.


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.