Economic Outline

Economic Indicators

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.

Any Comment About This Content? Report It to Us.