Peru profile

Demography and Health

Peru's population stands at about 34.22 million in 2024, with a modest net migration inflow of around 18 thousand people in 2024. The country exhibits a young to middle-aged demographic profile, with a birth rate of 15.9 per 1,000 people and a crude death rate of 5.49 per 1,000, contributing to a life expectancy at birth of 77.7 years in 2023. The under-5 mortality rate is 15.8 per 1,000 live births (2023), signaling substantial gains in child survival but continued room for improvement relative to higher-income peers. The population living in national poverty remains significant at 27.5% (2022), and 7.0% of the population faced undernourishment (2022), underscoring persistent vulnerability even as other health indicators improve. Peru also shows strong internet penetration for a developing economy, with 79.5% of individuals using the Internet in 2023, highlighting opportunities for digital health and education expansion across urban and rural areas.

Health system capacity presents a mixed picture. Current health expenditure accounts for 6.09% of GDP in 2022, and domestic general government health expenditure per capita (PPP, current international US$) is about 605, indicating a meaningful public role in health financing. The physician density is 1.62 per 1,000 people (2022), and hospital beds total 1.6 per 1,000 (2021), suggesting adequate overall coverage but potential access gaps in remote regions. These inputs support a health system that has achieved notable life expectancy gains, yet actual access, quality of care, and out-of-pocket burdens may still constrain the poorest households. When combined with the prevalence of poverty and undernourishment, it points to a health equity challenge—progress in aggregate indicators may mask disparities across regions and social groups. The governance and institutional environment—captured in part by indicators of political stability and rule of law—also influences health outcomes, as service delivery depends on effective management, corruption control, and sustained investment in health infrastructure.

Economy

Peru’s economy shows a modest per-capita income level with GDP per capita at 8,452 current US$, and a higher GDP per capita on a purchasing power parity basis of 17,802 international dollars. The export orientation is moderate, with exports of goods and services comprising 28.5% of GDP in 2024, while imports account for about 22.9% of GDP in 2024, signaling a fairly open economy with a substantial external trading footprint. The current account balance is positive at 2.21% of GDP in 2024, suggesting a favorable external position that can support macro stability, though it may still be sensitive to commodity cycles and global demand shifts. Inflation is contained at 2.01% in 2024, and the unemployment rate stands at 4.9% in 2023, reflecting a relatively balanced labor market in a developing economy. Peru’s domestic R&D activity remains modest, with research and development expenditure around 0.162% of GDP in 2022, and patent activity modest (94 resident patent applications in 2021), indicating that innovation is progressing but at a slow pace relative to higher-income peers. High-technology exports are small in absolute terms (about 264 million USD in 2023), reinforcing the view that the economy remains more resource- and tradables-driven than knowledge-intensive. Renewable energy accounted for roughly 30.6% of total final energy consumption in 2021, illustrating progress toward cleaner energy within the mix of energy sources. The environmental and social footprint is visible in emissions, with total greenhouse gas emissions excluding LULUCF per capita at about 2.78 t CO2e per person in 2023. Peruvian governance indicators show a mixed environment for business and investment: regulatory quality is modest (0.292) but political stability and rule-of-law metrics are weaker, with the political stability index at -0.522 and the rule-of-law index at -0.538, while control of corruption is particularly weak at -0.721. These patterns suggest that while macroeconomic fundamentals show resilience, structural reforms could be needed to sustain investment and efficiency gains over the longer term.

Trade and Investment

Trade openness is evident in Peru’s external sector: exports of goods and services exceed a little over a quarter of GDP (28.5% in 2024) and imports account for about 23% of GDP (2024), indicating an economy that relies on external markets for growth and access to goods and inputs. The current account balance of 2.21% of GDP in 2024 signals a modest but positive external position, which can help finance investment and cushion shocks from global commodity cycles. Foreign direct investment remains positive but moderate as a share of GDP (net inflows 1.47% of GDP in 2023), pointing to continued investor interest but not a standout acceleration relative to regional peers. Innovation indicators remain subdued: residents filed 94 patent applications in 2021, and gross domestic expenditure on R&D stood at 0.162% of GDP in 2022, underscoring a need to deepen the knowledge economy. Peru’s export mix and technology indicators align with a development model increasingly diversified away from a sole reliance on primary commodities, yet the relatively small share of high-technology exports (about 264 million USD in 2023) and modest R&D intensity suggest room for upgrading product sophistication and value-added in trade. The regulatory environment—while not catastrophically restrictive—shows room for improvement, as reflected in moderate regulatory quality and weaker governance indicators, which can affect business confidence and investment efficiency. Overall, Peru sits on a path of openness and integration, but sustained growth will depend on advancing governance, education, and innovation to complement its trade strengths.

Governance and Institutions

Peru’s governance framework exhibits a mixed performance. Regulatory quality registers a positive but modest score of 0.292 in 2023, while other core governance dimensions appear more challenging: control of corruption stands at -0.721, government effectiveness at -0.492, and the rule of law at -0.538, alongside political stability at -0.522. These figures suggest that while policy design and regulatory intent exist, weak implementation, governance bottlenecks, and corruption risks can hinder efficient public service delivery and the business climate. Public trust in institutions may be impacted by these weaknesses, particularly in areas requiring strong rule of law and predictable administrative processes. The Logistics Performance Index scores 2.5 (2022) for quality of trade and transport-related infrastructure, with a relatively favorable country ranking near 21 in that metric, indicating that trade facilitation infrastructure is improving but not yet top-tier. Overall, governance and institutions in Peru show a trajectory of incremental improvement in regulatory quality but persistent fragility in corruption control and rule-of-law enforcement, which can affect foreign investment decisions, public procurement, and the development of an enabling environment for private sector growth.

Infrastructure and Technology

Peru has notable digital connectivity, with 79.5% of the population using the Internet in 2023, a foundation for digital health, education, and commerce. Infrastructure for trade and logistics is improving, reflected in a Logistics Performance Index of 2.5 (2022) and a 21st-ranked standing in that dimension, suggesting mid-range efficiency in trade-related transport and border procedures. Physical health infrastructure shows mixed adequacy: 1.6 hospital beds per 1,000 people (2021) and 1.62 physicians per 1,000 people (2022) point to a health system with reasonable capacity in urban centers but likely gaps in rural and low-income areas. Investment in science and technology remains modest: R&D expenditure is 0.162% of GDP (2022), and 94 resident patent applications were filed in 2021, with high-technology exports totaling about 264 million USD (2023). The combination of modest R&D intensity, relatively low high-tech export performance, and limited patent activity indicates that Peru’s technological upgrading is at an early stage, requiring policy emphasis on education, skills, and innovation ecosystems to raise productivity and competitiveness. Renewable energy constitutes about 30.6% of total final energy consumption (2021), signaling progress toward cleaner energy and potential cost savings in the longer term, while energy infrastructure and grid resilience remain essential priorities for sustained growth. The health and education workforce capacity, indicated by physicians and hospital beds per capita, will be crucial for leveraging digital and physical infrastructure as the country industrializes and urbanizes further.

Environment and Sustainability

Peru’s environmental indicators reveal both progress and pressures. Renewable energy accounts for about 30.6% of total final energy consumption (2021), illustrating a meaningful shift toward cleaner energy sources alongside ongoing reliance on conventional fuels. Per capita greenhouse gas emissions excluding LULUCF stand at 2.78 t CO2e (2023), a relatively modest level by global standards, though total emissions continue to accumulate with economic activity. Water resources face stress considerations, with freshwater withdrawal representing 7.18% of available freshwater resources in 2021, and the environment ranking place for water stress indicates a substantial but not extreme pressure in many basins. The poverty line and undernourishment indicators—27.5% and 7%, respectively—also intersect with environmental considerations, as climate and resource constraints can affect agricultural productivity and food security. Peru’s climate and biodiversity profile, characterized by diverse ecosystems from the Andes to the Amazon, suggests significant potential for sustainable development through ecological tourism, clean energy, and prudent land-use planning, though it also requires safeguarding water quality and resilience to climate-related hazards. In sum, Peru demonstrates a trajectory toward cleaner energy and sustainable resources, but attention to governance, investment in environmental protection, and resilience planning remains essential to translate environmental gains into broad-based development benefits.