Overview

• Peru posted a 3.5% of GDP fiscal deficit in 2024, breaching its fiscal rule for a second straight year, the OECD says.
• The OECD projects GDP growth of 2.8% in 2025 and 2.6% in 2026 and warns that failure to consolidate could lift financing costs and jeopardize investment‑grade status, with election‑year uncertainty and rising crime weighing on confidence.
• The report calls for measures worth about 0.4% of GDP in 2025–26, including restraining the public payroll, phasing out diesel subsidies and trimming tax expenditures, alongside a deeper tax reform and stronger tax administration.
• Structural constraints—tax revenue near 17% of GDP and informality affecting over 71% of workers—are identified as key factors limiting fiscal space and long‑term development.
• The government counters that fundamentals are solid, citing public debt near 31.8% of GDP, international reserves around US$88.7 billion and low inflation, and it promotes a legislative package on APPs, procurement, cabotage, tourism, irrigation and agrarian rules to attract investment.