OECD Economic Surveys: Peru 2023
Peru's solid macroeconomic framework has driven substantial economic growth and poverty
reduction in the past two decades. While the economy swiftly rebounded from the pandemic
due to strong policy support, it exposed structural weaknesses such as a large informal
sector and stark regional disparities in accessing public services. More recently,
growth has slowed, and inflation remains high but declining. Looking ahead, main challenges
for boosting productivity and investment include strengthening competition, improving
regulations, diversifying exports, and enhancing infrastructure. Improvements in governance
and the rule of law are essential pillars for achieving sustainable long-term growth
and social cohesion. Expanding access to quality education, reducing social contributions,
particularly for low-income workers, and providing a same basic level of universal
social protection for all workers, formal and informal alike, would help reducing
widespread informality and inequities. This will require raising additional tax revenues
and improving spending efficiency. Environmental challenges and risks loom large,
but also provide significant opportunities for the future. To tackle environmental
challenges Peru needs to curb deforestation, while capitalizing on its renewable energy
potential to reduce reliance on fossil fuels.
SPECIAL FEATURES: RAISING PRODUCTIVITY, EXPANDING SOCIAL PROTECTION, REDUCING LABOUR
INFORMALITY
Published on September 27, 2023Also available in: Spanish, French
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