Peru

Peru is a country of remarkable cultural, geographic, and natural diversity. With landscapes ranging from the Andes to the Amazon, a world-renowned cuisine, and a millennia-old history, the country combines a unique heritage with strong economic potential.

Over the past decades, Peru achieved significant progress. Poverty fell from 60 percent in 2002 to 24 percent in 2013, while GDP per capita increased from approximately US$2,100 in 2003 to more than US$8,400 in 2024. This performance was supported by prudent macroeconomic policies, low inflation, manageable public debt, and a sound financial system.

However, growth slowed from an average of 6.2 percent between 2005 and 2014 to 2.4 percent between 2015 and 2024. Low productivity, informality, regional disparities, institutional weakening, and citizen insecurity continue to constrain the country’s potential. The challenge is to translate macroeconomic stability into greater investment, higher productivity, and more formal, quality jobs.

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Peru could become a high-income country within two decades if it implements bold reforms. To achieve this, it will need to raise business productivity, strengthen the State’s institutional capacity, and reduce regional disparities.

Improving productivity requires removing barriers that hinder business growth and formalization, particularly among small and medium-sized enterprises (SMEs). It also calls for a more digitalized economy, with greater financial inclusion for SMEs and more efficient use of digital technologies in health, education, and public administration.

Strengthening the State entails building a competitive civil service, attracting talent through merit-based processes, and simplifying administrative procedures. Reforming public investment would also help accelerate projects and ensure tangible benefits for citizens.

Closing infrastructure gaps in roads, water, and energy will require mobilizing both public and private investment. The World Bank Group can support project structuring, help mitigate risks, and attract private capital to complement public resources. Peru’s mining potential and the energy transition also present opportunities to attract investment, develop infrastructure, and create jobs.

The macroeconomic environment remains stable. The fiscal deficit declined from 3.4 percent of GDP in 2024 to 2.2 percent in 2025, in line with the fiscal rule, and is projected to fall further to 1.5 percent in 2026. Public debt decreased to 30.2 percent of GDP in 2025 and is expected to decline to 29.4 percent in 2026. Inflation stood at 1.5 percent in 2025 and is projected to reach 4 percent in 2026, above the central bank’s target range of 1 to 3 percent.

The economy grew by 3.4 percent in 2025, driven by private investment and consumption, and is projected to expand by 3 percent in 2026. Poverty, measured using the US$8.30 per person per day line (2021 PPP), stood at 36.2 percent in 2024 and is expected to decline to 34.6 percent in 2025 and 33.1 percent in 2026, supported by the recovery of the labor market and household incomes.

Ultimately, accelerating growth and poverty reduction will depend on ensuring that investment translates into more productive firms and more and better jobs. This direct link between mobilizing private capital and creating opportunities is also a central message of the institution’s agenda.

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With reforms that close territorial gaps, strengthen institutions, and improve the management of public investment, Peru can advance toward sustainable and inclusive development and become a high-income country within two decades.

The Country Partnership Framework for Peru (2023–2027) guides the World Bank Group’s joint efforts to promote inclusive, sustainable, and resilient development. Through the complementary capabilities of IBRD, IFC, and MIGA, it combines public financing, private investment, guarantees, knowledge, and project structuring to boost productivity, improve public services and social protection, close territorial gaps, expand financial inclusion, and strengthen climate resilience. This One World Bank Group approach seeks to mobilize public and private resources toward tangible results: stronger growth, better services, and formal jobs across the country.

The active portfolio of the International Bank for Reconstruction and Development (IBRD) amounts to US$3.34 billion and includes 16 investment projects and three development policy operations. These interventions are designed to expand economic and employment opportunities, improve public services, strengthen institutions, and enhance resilience to crises. They also help create the conditions, infrastructure, and institutional framework needed to attract private investment.

IFC’s portfolio in Peru exceeds US$1 billion, including US$92 million mobilized from third parties, with commitments in 12 financial and non-financial institutions. The financial sector accounts for 79 percent of the portfolio and infrastructure for 21 percent. Recent operations include US$50 million for Celsia S.A. to support renewable energy generation; US$260 million for BBVA Continental to finance green buildings; US$100 million for MiBanco to support SMEs, particularly women-owned businesses; and US$25 million for Grupo Ransa to advance decarbonization efforts.

As of April 2026, the Multilateral Investment Guarantee Agency (MIGA) exposure in Peru totaled US$1.342 billion across four financial sector projects, making it the fifth-largest exposure in Latin America and the ninth-largest worldwide. Since July 2024, MIGA has issued two guarantees covering the reserve requirements of Banco Santander Perú for US$403 million and BBVA Perú for US$300 million. Part of these resources supports climate finance and lending to MSMEs, including women-led businesses.

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