Country Private Sector Diagnostic

Creating Markets in Peru

December 4, 2023

Growth opportunities to reduce regional gaps

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Download: Executive Summary | Full Report

In the two first decades of this century, Peru was one of the most prominent economic performers in Latin America. The fast growth transformed Peru into an upper-middle-income economy, with aspirations to become a high-income economy in the next decade. Peru's comparative advantage in raw materials, along with a favorable external environment, boosted exports and domestic income. Likewise, solid macroeconomic management coupled with well-targeted social programs fostered an economic growth with some measure of inclusiveness.

However, the COVID-19 crisis exposed a stark contrast between Peru’s achievements and deep structural challenges that had remained unaddressed, reflected in the polarizing levels of regional and income disparities, and reaching the point of threatening the economic and social gains of the past two decades. Sustainability is an additional challenge to address: Peru is one of the most vulnerable countries to climate change.

This Country Private Sector Diagnostic (CPSD) provides recommendations that encourage private investment in the country over a period of three to five years, in a manner that contributes to reducing regional inequalities. The document identifies the transversal challenges of the Peruvian economy and analyzes the sectors with a high potential to close regional development gaps in the country.