Peru is a priority country of SECO’s economic cooperation and development. The Peruvian economy has shown steady growth in recent years. However, in 2020, the COVID-19 pandemic hit the country hard, heavily affecting growth rates and threatening to reverse the progress in reducing inequality of the past 20 years. SECO supports Peru’s economic development by fostering resilient subnational growth hubs and a competitive, innovative and sustainable private sector.

Opportunities and challenges

The Peruvian economy faces several challenges: First, the capital city Lima remains the countries’ single most important source of growth and employment (one-third of Peru’s population lives in Lima). It therefore constitutes a bulk risk to the economy, also because Lima is highly vulnerable to climate change and natural disasters. Second, Peru’s economy remains heavily dependent on commodity exports, mainly gold.

Peru aims to diversify its sources of growth in geographic terms by developing economic hubs outside of Lima and by improving the resilience of its economy. The government assigns a high priority to advance decentralisation, to diversify the Peruvian economy, to increase the productivity of firms and to strengthen international competitiveness.

What are SECO’s objectives?

SECO supports the country’s efforts and promotes:

  • Resilient subnational growth hubs
    SECO contributes to an effective, green and transparent use of public resources at the national and subnational level. It collaborates with the Peruvian Government and the private sector to improve urban infrastructure. Concretely, SECO supports emerging medium-sized towns in their ability to provide basic public services, such as clean water, sanitation and mobility.
  • A competitive, innovative and sustainable private sector
    SECO pushes for policy reforms to improve the business environment for the private sector and the investment climate. Furthermore, SECO promotes the strengthening of selected value chains and supports an increase in the international competitiveness of Peru’s private sector.

From 2021 to 2024, a total of some CHF 75 million is foreseen for SECO’s economic development cooperation with Peru.

Last modification 01.05.2024

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