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Peru is a country of striking contrasts and vibrant energy, where ancient civilizations meet modern ambition. Known for its world-famous cuisine, breathtaking landscapes—from the peaks of the Andes to the depths of the Amazon—and a rich tapestry of cultures, Peru has long captured the imagination of travelers and investors alike. As an upper-middle-income economy, Peru has made remarkable social and economic gains in recent decades: poverty fell from 60 percent in 2002 to 24 percent in 2013, and GDP per capita soared from just over US$2,100 in 2003 to more than US$8,400 in 2024. Prudent monetary, fiscal, and financial policies—reflected in low inflation, manageable public debt, large international reserves, and a sound financial system—have underpinned these achievements.

Despite this progress, Peru faces persistent challenges. Economic growth has slowed in recent years, dropping from an average of 6.2 percent between 2005 and 2014 to just 2.4 percent between 2015 and 2024. High levels of informality, regional disparities, the weakening of institutions, and a dynamic but sometimes turbulent political landscape continue to shape the country’s development path. Yet, the resilience and creativity of the Peruvian people, combined with the country’s natural wealth and entrepreneurial spirit, offer hope for a more inclusive and prosperous future.

Last Updated: Oct 01, 2025

Peru has the potential to become a high-income country within two decades, if bold reforms are implemented. However, under current conditions, it would take the country 64 years to achieve high-income status. Reforms should aim to increase firm productivity, strengthen the State’s institutional capacity, and reduce regional disparities. To achieve the first objective, priority should be accorded to removing the barriers hindering the growth of medium-sized firms in the country, rather than attempting to formalize the country’s large number of informal firms. Enhancing institutional capacity will involve measures such as introducing an attractive civil service system for public institutions that will prioritize attracting talent through competitive processes and simplifying administrative procedures. To reduce regional disparities, the public investment system will have to be reformed to ensure that public works can be completed and provide benefits to citizens.

Peru’s macroeconomic environment remains stable. The annualized fiscal deficit decreased from 3.5 percent of GDP at end-2024 to 2.6 percent by July 2025, though it still exceeds the year-end target of 2.2 percent. This reduction was mainly due to revenue growth outpacing expenditures. The deficit is projected to gradually decline to 1.9 percent of GDP in 2026. Inflation is expected to remain within the central bank’s target range of 1-3 percent. International reserves reached 26.5 percent of GDP in July 2025, equivalent to 13.7 months of imports.

Peru’s economy is expected to grow by 3.0 percent in 2025 and 2.5 in 2026.   In 2024, 36.2 percent of Peruvians lived on less than US$8.30 per day (2021 PPP). Although poverty is expected to decrease to 35.3 percent in 2025 and 34.2 percent in 2026, these rates will remain slightly above the pre-pandemic level of 33.6 percent observed in 2019.

Last Updated: Oct 01, 2025

With bold reforms that enable the reduction of territorial gaps and the improvement of institutional effectiveness, particularly in public investment management, Peru has the opportunity to achieve sustainable and inclusive development, with the potential to become a high-income country within the next twenty years.

The Peru Country Partnership Framework (2023–2027) guides the World Bank Group’s support for Peru’s inclusive and sustainable development. The focus is on improving public and social protection services, reducing territorial inequalities, and boosting resilience to climate and other shocks.

ľ��ӰԺ’s active portfolio totals US$2.78 billion, comprising 14 investment projects and three development policy operations. These initiatives aim to expand economic opportunities for jobs creation, enhance public services nationwide, and strengthen resilience to shocks. The portfolio supports policies for resilient, inclusive growth, increased productivity, institutional capacity, and reduced regional disparities.

Investment projects target infrastructure (urban transport, water and sanitation, irrigation, electricity transmission), justice services, social protection, digitalization, innovation, and health. 

IFC’s investment portfolio in Peru is about US$800 million (including US$92 million in third-party mobilization), with commitments to 12 financial and nonfinancial institutions. The financial sector accounts for 79% of the portfolio, infrastructure 21%. Recent notable transactions include: US$260 million to BBVA Continental for green building finance, US$100 million to MiBanco for SME financing (focused on women-owned SMEs), and US$25 million to Grupo Ransa for decarbonization.

As of October 2024, MIGA’s exposure in Peru was US$1.139 billion across three financial sector projects, making it the fourth largest in Latin America and the eighth globally. Since July 2024, MIGA has issued US$403 million in guarantees for Banco Santander Peru’s mandatory reserves, with part of this supporting climate finance in Peru.

Last Updated: Oct 01, 2025