Between 2021 and 2025, Peru's economy consolidated its position as one of the most solid and resilient in Latin America, standing out for the strength of its macroeconomic fundamentals, investment dynamism, as well as prudent fiscal and monetary management, the
Likewise, the South American country positioned itself among the region's leading economies in terms of macroeconomic management, stability, and investor confidence, according to the 2021–2026 Pre-Electoral Report prepared by the MEF.
In this regard, it noted that during the 2021–2025 five-year period, Peru's gross domestic product (GDP) grew by an average of 4.5% in real terms—the second-highest rate in Latin America—marginally surpassed only by Colombia (4.6%).
This performance is particularly significant in a regional context marked by external shocks, international financial volatility, and the pandemic's economic aftereffects.
Economic growth was underpinned by a strong boost from domestic demand. Solid momentum in both public and private investment stood out, which expanded by an average of 10.5% and 8.3%, respectively, over the period under review.
This dynamism reflected a combination of countercyclical fiscal policies, improved public spending execution, and a predictable macroeconomic environment that was conducive to investment development.
Private investment
The boost to private investment was supported by the construction and expansion of projects such as Toromocho II Expansion, Chalcobamba I, and San Gabriel, among others.
These investments not only strengthened the country's productive capacity but also contributed to export growth and regional productive linkages' development.
Investments in logistics and port infrastructure stood out as well.
A key milestone was the inauguration of the Chancay Port Terminal in November 2024. Its Phase 1 represented an investment worth US$1.3 billion, consolidating Peru as a strategic foreign trade hub on the South American Pacific coast.
Public–Private Partnership
The period was also marked by significant project awards under the Public–Private Partnership (PPP) model across sectors such as road transportation, ports, electricity, and sanitation.
These included the expansion of: Jorge Chavez International Airport, the South and North piers of the Callao Port, and the continued development of Lima Metro Line 2.
Driven by the mining and agribusiness sectors, Peruvian exports grew 36.5% over this period, rising from US$63 billion (2021) to more than US$86 billion (2025), strengthening the trade balance and foreign exchange earnings.
In the fiscal sphere, despite a challenging environment between 2020 and 2025, Peru managed to progressively reduce its fiscal deficit, keeping it among the lowest in the region.
Peru preserved a solid composition of its public debt and a prudent level of indebtedness, which allowed for mitigating risks from external shocks and maintaining its investment-grade credit rating, initially obtained during the 2008–2009 period.
High NIR
A key pillar of macroeconomic stability was the Net International Reserves' (NIR) high level, which by the end of 2025 reached 28% of GDP—well above levels recorded by regional peers such as Brazil (16%), Colombia (15%), and Chile and Mexico (both at 14%).
This external buffer strengthened market confidence and enhanced the country's capacity to respond to adverse scenarios.
As a result of these strengths, Peru's country risk averaged the second-lowest level in the region over the period (172 bps), trailing only Chile (139 bps). This helped reduce financing costs for the State, businesses, and households.
In the
monetary sphere, average inflation over the period stood at 4.4%—the lowest in Latin America—reflecting the effectiveness of the inflation-targeting framework and the timely actions of the Central Reserve Bank (BCR).
This outcome was underpinned by a technical, credible, and independent monetary policy.
Challenging context
The Cabinet member added that her administration has been promoting responsible and prudent public finances management, aimed at safeguarding macroeconomic stability.
She also noted that this approach is grounded in responsible fiscal management, investment promotion, and macroeconomic stability prioritization as a strategic asset to foster sustainable growth, create jobs, strengthen citizens' well-being, and consolidate a climate of confidence conducive to private investment.
Thanks to these indicators, Peru reaffirms its position as one of the region's most solid economies, featuring macroeconomic fundamentals that constitute a key competitive advantage in the face of the challenges and opportunities of the next economic cycle.
Fiscal agenda
Looking ahead, the government has defined a fiscal agenda aimed at strengthening macroeconomic stability and public finances' sustainability.
This agenda includes a commitment to gradually and responsibly reduce the fiscal deficit and keep public debt below the legal ceiling, thereby reinforcing the country's capacity to withstand future shocks.
According to the MEF, this strategy is underpinned by strengthening more stable and permanent revenue sources; greater efficiency and prioritization of public spending—particularly investment and high-impact social expenditure; the continuation of the Fiscal Agreement for Sustainable Growth through dialogue and consensus; and the adoption of international best practices recommended by organizations such as the International Monetary Fund (IMF), the World Bank (WB), and the Organisation for Economic Co-operation and Development (OECD).
These measures are aimed at improving revenue collection, spending more efficiently, and preserving fiscal balance as the foundation for sustainable economic growth, it concluded.