Peru Facts and Figures

Peru, located along the western coast of South America, is known for its cultural heritage, rich natural resources, and expanding economy. Bordered by Ecuador, Colombia, Brazil, Bolivia, and Chile, with the Pacific Ocean to the west, Peru has a strategic position that strengthens its role in regional trade and tourism. Renowned for its ancient civilizations and diverse ecosystems, Peru is a unique cultural and economic force within Latin America.

Lima, the nation’s capital, serves as the country’s economic and political hub. Famous for its historical sites and vibrant urban life, Lima captures the spirit of modern Peru while preserving its rich heritage, drawing interest from tourists, businesses, and investors worldwide."

Demographics of Peru

Peru has a population of 34.4 million (2023) and a relatively low population density of 26 people per square kilometer. The population is young, with a median age of 29 years and 65.6% of its people in the working age range, positioning Peru to harness a strong labor force. The country’s population is growing at 0.9% annually, supported by a fertility rate of 2.2. Peru’s urbanization rate stands at 78.9%, reflecting a strong trend toward city living. Life expectancy is 73 years, though the country faces a moderate infant mortality rate of 11.7 per 1,000 live births, pointing to ongoing healthcare improvements.

Economic Profile

Peru’s economy ranks 49th globally, with a GDP of $267.6 billion (2023) and a steady growth rate of 2.7%. Industry plays a central role, contributing 34% of GDP, with manufacturing at 11.7%, while agriculture remains vital at 7.8% of GDP, given Peru’s diverse agricultural exports. Services account for 49.5% of GDP, showing a balanced economic composition. Inflation has decreased from 6.3% in 2023 to a projected 2.3% in 2024, creating a stable environment for consumers and businesses alike. Peru’s trade balance is positive, with a surplus of $8.5 billion, as exports reached $60.8 billion and imports totaled $52.3 billion. Unemployment stands at 4.9% (2023), indicating a relatively stable job market.

Public Finance and Fiscal Policy

Peru’s fiscal policy reflects a commitment to sustainable growth. Net lending and borrowing as a percentage of GDP shifted slightly from -1.40% in 2022 to -2.77% in 2023. The general government debt remains manageable at 31.49% of GDP, while central government debt has risen to 30.41% of GDP from 16.85% in 2012. Peru’s moderate debt levels allow it to support continued economic growth and maintain fiscal flexibility.

Security and Defense Investment

Peru’s defense budget constitutes 1.2% of GDP, with a military personnel count of approximately 81,000. Given its strategic location and commitment to regional stability, Peru maintains a robust defense infrastructure, ensuring national security and contributing to its role as a stabilizing presence in South America.

Tourism and Cultural Heritage

Tourism is a cornerstone of Peru’s economy, celebrated for iconic sites such as Machu Picchu, the Sacred Valley, and the Amazon rainforest. Peru’s rich cultural heritage and natural landscapes attract millions of visitors annually, significantly contributing to local and national economic growth. The tourism sector embodies Peru’s diverse identity and its place as a leading cultural destination in South America.

Conclusion

With its expanding economy, young workforce, and strategic position in South America, Peru offers significant opportunities for businesses and investors. Market research in Peru is essential for understanding its economic landscape, consumer behavior, and regulatory environment. From natural resources to cultural tourism, Peru’s diverse economy and rich heritage make it a compelling market for companies looking to establish a foothold in Latin America.