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Peru has made remarkable progress in economic growth and poverty reduction in the two decades prior to the COVID-19 pandemic. Macroeconomic stability, trade openness, and a favorable international environment allowed the country to become an upper middle-income economy, with per capita income rising from US$ 2040 in 2002 to US$ 7126 in 2022. Its strong record of prudent macroeconomic policies and current macroeconomic indicators reflect low public debt, ample international reserves, and a credible central bank. Its financial system is well-capitalized and well positioned to withstand liquidity crises. 

However, the country continues to face significant threats to achieving greater development and prosperity: the impact of climate change, persistent inequalities, and its economic structure dependent on its natural resources. In addition, unaddressed structural constraints limit formal job creation, economic diversification, and the pace of poverty and inequality reduction.

Better quality public services, stronger governance, a conducive business environment and political stability will be key to higher and more inclusive growth that promotes poverty and inequality reduction.  

In detail, during the first six months of 2023, increased exports from Quellaveco, which accounts for more than 10 percent of domestic copper production, drove growth. Likewise, the labor market showed signs of recovery; employment in companies with more than 50 workers increased 4 percent and there was also a slight increase in average real wages.

In the same period (January - June 2023), GDP contracted by 0.5 percent due to political uncertainty, social unrest and the occurrence of disasters. Tighter financial conditions also contributed to depressed private spending and the country showed a slower than expected recovery. Weather events and conflict in the country impeded the execution of public investment, and key sectors such as agriculture, fisheries and tourism showed a lagged recovery.  

In August, annualized government revenues were 1.8 percentage points of GDP lower than in 2022, mainly due to lower corporate income tax and IGV collection. In addition, the annualized public deficit increased to 2.6 percent of GDP, 0.2 percentage points above the modified fiscal target for 2023. Both public debt (34 percent of GDP) and sovereign risk spreads remain among the lowest in the region.

From December 2022 to August 2023, inflation declined from 8.5 to 5.6 percent, but is still above the target range of 1 to 3 percent. Excluding the more volatile food and energy prices, inflation stood at 3.8 percent and inflation expectations fell to 3.4 percent.

Perú: Evolution of GDP 2016 - 2022

Last Updated: Oct 05, 2023


Peru: Commitments by Fiscal Year (in millions of dollars)*

*Amounts include IBRD and IDA commitments
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Country Office Contacts

PERU +51 1 622-2300
Avenida Álvarez Calderón 185, San Isidro - Lima
USA +1 202 473-1000
1818 H Street NW, Washington, DC 20433