Peru has been one of the most dynamic and steadily growing economies in Latin America in recent decades. Between 2001 and 2019, the country sustained an average annual growth rate of 4.8%, supported by sound macroeconomic management and prudent fiscal policies. Inflation has remained low and stable, with an average annual rate of 3.5% from 2001 to 2023. Public debt and exchange rate volatility are among the lowest in the region.
Economic progress has led to the emergence of a sizeable middle class. According to the World Bank, 33% of the population belonged to the middle class in 2022, up from 15% in 2005. Although poverty increased temporarily due to external shocks such as the COVID-19 pandemic, it remains significantly below early 2000s levels.
Peru’s strong pandemic response, including a stimulus package equivalent to 20% of GDP, supported a rapid recovery, with 13.3% growth in 2021. GDP growth is expected to return to stabilize around 3.0% in the coming years (IMF, 2023).
The Peruvian government continues to promote trade liberalization and integration into the global economy. Peru maintains one of the most open trade regimes in the region, with an average tariff rate of 2.2% and zero tariffs applied to most capital and intermediate goods. The country has signed 17 free trade agreements (FTAs), including with:
- Canada
- the United States (U.S.)
- the European Union (EU)
- the United Kingdom (UK)
- China
- members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)