Overview

Peru has made remarkable progress in economic growth and poverty reduction in the two decades prior to the COVID-19 pandemic.

What are the development challenges in Peru?

Peru faces persistent challenges to achieving greater development and prosperity. Economic growth has slowed in recent years, decreasing from an average of 6.2 percent between 2005 and 2014 to just 2.4 percent from 2015 to 2024. High levels of informality, regional disparities, weakening institutions, and a dynamic yet sometimes turbulent political landscape continue to shape the country’s development path. Additionally, structural constraints limit formal job creation, economic diversification, and the pace of poverty and inequality reduction, while the economy remains heavily dependent on natural resources and vulnerable to the impacts of climate change.

Source: World Bank, 2025