Economic situation The benefits are not felt by everyone
Between 2002 and 2013, Peru’s economy grew by an average of 6.1 per cent. In recent years, economic growth has slowed down, particularly because of falling commodity prices, e.g. for copper, and the economic impact of the "El Niño Costero" climate phenomenon, which caused heavy flooding in 2017.
The main factors driving Peru’s economic growth are foreign trade and extensive investment in mining and the extraction of natural gas.
Up to now, however, the government’s efforts to pass on the gains of economic growth to poorer sections of the population have not been very successful. Social programmes and arrangements for transferring funds from the national to the regional level of government have only had a limited impact on rural development.
Organised crime is a major challenge for further strengthening the rule of law and for stabilisation in Peru. The country is the world’s second largest coca producer after Colombia. Illegal trading in timber, gold and endangered species and human trafficking are further lucrative sources of income. These criminal activities are linked to illicit financial flows, corruption and money laundering, which further undermine the rule of law and deprive the country of important development resources.