This article is adapted from AQ’s special report on trends to watch in Latin America in 2025
Peru
PRESIDENT
Dina Boluarte
IN OFFICE
2022-2026
Peru faces a fragile political balance as President Dina Boluarte, who has led the country since former President Pedro Castillo’s failed coup attempt in December 2022, has managed to navigate tensions with Congress due to her alliance with some right-wing parties. Her presidency has been marked by single-digit approval ratings over the past year, multiple impeachment motions, and corruption allegations (she denies any wrongdoing). As Congress has sought to influence judicial and electoral institutions, some observers have warned of democratic erosion. The IMF notes that political uncertainty continues to weigh on confidence and forecasts 2.6% growth this year as the economy recovers from a 0.6% contraction in 2023. According to the World Bank, an improved outlook for mining exports supported growth in 2024, and the country’s moderate growth environment and low inflation rates may help reduce poverty by 3 percentage points between 2023 and 2026. Peru’s ties with China, its top trading partner, have deepened in recent years. Last November, President Xi Jinping inaugurated the $3.5 billion China-backed deepwater port of Chancay, which is expected to significantly reduce shipping times between Asia and South America. General elections are slated for 2026 amid rising crime and political instability.
| Presidential approval rating | 4% |
| Population (millions) | 34.1 |
| Homicide rate (per 100,000 people) | 3.2 |
| % who say they would like to emigrate in next three years | 40% |
| Capacity to Combat Corruption Index ranking (out of 15 Latin American countries) | 4 |
TRENDS TO WATCH
- Congress’ moves to influence other powers
- Candidacies ahead of 2026 presidential election
- Chancay port’s effects on trade
ECONOMIC INDICATORS (2025 PROJECTIONS)
| GDP (current USD, billions) | $294.9 |
| GDP (% change) | +2.6% |
| GDP per capita (current USD) | $8,570.4 |
| Inflation | 1.9% |
| Unemployment rate | 6.5% |
| Poverty rate (World Bank definition, see note below) | 32.2% |
| Fiscal balance (% of GDP) | -2.3% |
| FDI (2023, billions USD) | $3.3 |
| Remittances inflows (2023, billions USD) | $4.4 |
NOTE: Poverty rate is $6.85 in 2017 PPP. Pie chart indicates total value added of GDP by economic activity at current prices. Figures rounded to nearest decimal.
SOURCES: Presidential approval: Ipsos (November 2024); Population, GDP and growth, inflation, unemployment: IMF World Economic Outlook (October 2024); Homicide rate: InSight Crime (2024); Emigration polling: AmericasBarometer (2023); Corruption index: AS/COA and Control Risks (2023); Trading partners: World Integrated Trade Solution (2022); GDP by economic activity: ECLAC (2022); Poverty and fiscal balance: World Bank (October 2024); FDI: UNCTAD (June 2024); Remittances: World Bank (June 2024).
