What Is the Economy of Peru? Pillars, Indicators & Trade
Gain a nuanced understanding of Peru's dynamic economy, exploring its foundational elements, performance, and global interactions.
Peru has an emerging, mixed economy with substantial foreign trade. The World Bank classifies Peru as an upper-middle-income economy, ranking it as the forty-seventh largest globally by GDP. The nation has demonstrated economic dynamism over recent decades, driven by its rich natural resources and market-oriented policies. This framework has fostered significant growth and integration into global markets.
Major Economic Pillars
Mining is a dominant force within Peru’s economy, leveraging the country’s extensive mineral resources. Peru is the world’s second-largest producer of copper and silver, the seventh-largest producer of gold, and the second-largest producer of zinc. This sector provides essential raw materials for global industries and contributes significantly to export earnings.
Agriculture also plays a pivotal role, encompassing traditional crops and a robust agro-export segment. While staple foods are grown for domestic consumption, Peru is a prominent exporter of products such as grapes, blueberries, asparagus, avocados, and coffee. The agricultural sector experienced a 6.8% expansion in 2024.
Peru’s fishing industry is globally significant, ranking as the third-largest worldwide as of 2022. The primary target species is the Peruvian anchoveta, used for the production of fishmeal and fish oil. Peru is the world’s largest producer of these commodities.
The services sector represents the largest component of Peru’s economy, contributing 59.9% of the gross domestic product. This broad sector includes tourism, finance, retail, and telecommunications. Its increasing importance reflects a shift beyond traditional resource extraction.
Manufacturing in Peru is closely linked to its primary sectors, including mining, fishing, and agriculture. Activities primarily involve processing raw materials to add value. Promising sub-sectors include textiles, food processing, and metal mechanics. The industrial sector grew by 3.9% in 2024.
Key Economic Indicators
Peru’s Gross Domestic Product (GDP) reached an estimated nominal value of USD 295 billion in 2024. The economy experienced a growth rate of 3.3% in 2024. Projections indicate continued growth, with an expected increase of 2.9% in 2025.
Inflation in Peru has remained within the central bank’s target range of 1% to 3%. The annual inflation rate in Lima stood at 1.69% in July 2025.
The unemployment rate in Peru indicates a dynamic labor market. In July 2025, the unemployment rate decreased to 6.10%.
Public debt levels in Peru have been managed prudently. Government debt accounted for 32.7% of the country’s nominal GDP in December 2024.
Poverty rates in Peru have seen significant reductions over the past two decades. The poverty rate was 31.3% in 2024, a notable decrease from nearly 60% in 2004.
The Peruvian Sol, the national currency, has maintained stability. This stability is supported by the central bank’s prudent monetary and fiscal policies, which foster investor confidence.
International Economic Relations
Peru’s external economic engagement is characterized by a high level of foreign trade and numerous trade agreements. Total exports reached USD 75.91 billion in 2024, while imports amounted to USD 52.09 billion, resulting in a trade surplus. This reflects an open economy where trade represents a significant portion of the GDP.
Major exports include copper ores and concentrates, gold, refined copper, and various agricultural products such as grapes and blueberries. Key imports consist of fuels, machinery and equipment, transport vehicles, and consumer goods.
Peru’s primary trading partners are China and the United States. China is Peru’s largest export destination and leading source of imports. Other partners include the European Union, Brazil, Canada, and South Korea.
The nation actively participates in various trade agreements and regional blocs. Peru is a member of the World Trade Organization (WTO), the Pacific Alliance, and the Asia-Pacific Economic Cooperation (APEC) forum. Over 20 free trade agreements are in force, including agreements with the United States, China, the European Union, and Japan. These agreements aim to reduce trade barriers and promote the flow of goods and services.
Foreign Direct Investment (FDI) plays a role in Peru’s economy, particularly in mining and energy. The government has implemented measures to reduce bureaucratic barriers and stimulate capital investment, enhancing its attractiveness for foreign investors. This investment contributes to the development of key economic sectors and infrastructure.