Country Overview
Peru has prioritised infrastructure investment, creating a plan to attract the necessary investment to fund its infrastructure projects and close the infrastructure gap. Peru’s regulatory environment supports the creation of businesses promoting competition and investment. Despite a resilient financial sector, the impact of the COVID-19 pandemic, low GDP growth and lack of liquidity in the capital market may hinder Peru’s ability to attract capital and deliver infrastructure projects.
See Full Overview Data
GDP per capita
7,047 USD
Population
32.5 million persons
Infrastructure quality
62.3 (0-100 best)
Infrastructure investment
4.8% of GDP
Private infrastructure investment
1,643 5-year average, USD millions
Infrastructure gap
0.9% of GDP

Driver Overview

This section shows a country’s rank, ranking change and score for each of the eight drivers. It also categorises each country’s driver performance on a scale from “Emerging” (score from 0-20) to “Global Leader” (score from 80-100).

Driver
Rank
Score /100
Emerging Aspiring Contender Top performer Global Leader
- No ranking change Ranking increase Ranking decrease

Rank

Score /100

Best practice

69
1
34.5
Emerging
36
3
61.2
Contender
45
1
68.2
Contender
11
1
97.1
Global Leader
52
19
64.7
Aspiring
17
13
47.6
Top performer
32
-
41.1
Top performer
50
3
28.1
Aspiring

Metric Overview

Strengths

Registering property

According to the World Bank, it takes 9.5 days to register a property in Peru, which is lower than the Upper Middle Income Countries average of 21.7 days. As infrastructure projects often involve property rights, the shorter the time to register properties, the less cost and risk to the project.

Financial stability

Peru has become more financially stable and ranks slightly above the Upper Middle Income Countries’ average of 88.6. The stability is driven by strong capital buffers and profitability of the banking sector. The COVID-19 pandemic may test this resilience.

Cost to start a business

According to the World Bank, it costs 9.4% of income per capita to start a business in Peru, slightly lower than the Upper Middle Income Countries average of 11%, easing the entry of new firms.

Registering property

According to the World Bank, it takes 9.5 days to register a property in Peru, which is lower than the Upper Middle Income Countries average of 21.7 days. As infrastructure projects often involve property rights, the shorter the time to register properties, the less cost and risk to the project.

Financial stability

Peru has become more financially stable and ranks slightly above the Upper Middle Income Countries’ average of 88.6. The stability is driven by strong capital buffers and profitability of the banking sector. The COVID-19 pandemic may test this resilience.

Cost to start a business

According to the World Bank, it costs 9.4% of income per capita to start a business in Peru, slightly lower than the Upper Middle Income Countries average of 11%, easing the entry of new firms.

Top Performing Metrics

Top Performing Metrics

This is defined by the metrics with the highest unweighted score out of 100. 

Upper middle income country average

Financial markets:
Financial stability

Opportunities to Grow

Post-completion reviews

Peru does not undertake post-completion reviews for infrastructure projects. The implementation of post-completion reviews could help determine whether projects have achieved their objectives efficiently and identify areas for improvement.

Stocks traded

At 1% of GDP, Peru’s value of stocks traded is far lower than the Upper Middle Income Countries’ average of 26%. As this indicator measures the liquidity of equities, it is important to infrastructure investors to know they can exit investments at appropriate points.

Long term GDP growth trend

Peru’s long-term GDP growth is 4.4%, which is higher than the Upper Middle Income Countries’ average of 3.1%. Its relatively high growth, should it not be overly impacted by COVID-19, can be expected to correlate with greater infrastructure spending.

Post-completion reviews

Peru does not undertake post-completion reviews for infrastructure projects. The implementation of post-completion reviews could help determine whether projects have achieved their objectives efficiently and identify areas for improvement.

Stocks traded

At 1% of GDP, Peru’s value of stocks traded is far lower than the Upper Middle Income Countries’ average of 26%. As this indicator measures the liquidity of equities, it is important to infrastructure investors to know they can exit investments at appropriate points.

Long term GDP growth trend

Peru’s long-term GDP growth is 4.4%, which is higher than the Upper Middle Income Countries’ average of 3.1%. Its relatively high growth, should it not be overly impacted by COVID-19, can be expected to correlate with greater infrastructure spending.

Metrics to Improve

Metrics to Improve

This is defined by the metrics with the lowest weighted score out of 100, such that these metrics would have the greatest impact on the overall score.

For metrics that have binary outcomes (yes=100/no=0), no comparative income group average is reported.

Upper middle income country average

Financial markets:
Stocks traded

Funding capacity:
Long term GDP growth trend

Detailed Data

This section shows country data for each of the 41 metrics. The figures in brackets denote the change in score since InfraCompass 2017. 

Note that all data has been normalised on a scale of 1-100. For raw metric data, please download the complete InfraCompass 2020 dataset. 

Where relevant, some metric scores have been inverted, such that all metrics have positive relationships with good infrastructure outcomes. For example, since lower compliance costs make it easier to invest in infrastructure, the normalised value of ‘number of procedures to start a business’ has been reversed such that lower number of procedures are scored closer to 100, and higher numbers closer to 0. In other words, a score of 0 indicates a poor performance, rather than 0 number of procedures.

Governance Regulatory Permits Planning Procurement Activity Funding Financial
Driver
Rank
Score /100
Emerging Aspiring Contender Top performer Global Leader
- No ranking change Ranking increase Ranking decrease

Metric

Peru

Upper middle Income Countries Average

Source Link

28.2%

Recovery rate

The recovery rate is recorded as cents on the dollar recovered by secured creditors through reorganisation, liquidation or debt enforcement (foreclosure or receivership) proceedings.

31.3 (+1.3)
37.7

20.7%

Rule of law

World Governance Composite Indicator reflecting perceptions of the extent to which agents have confidence in and abide by the rules of society, and in particular the quality of contract enforcement, property rights, the police, and the courts, as well as the likelihood of crime and violence. The rule of law reflects whether the law imposes limits of power on the state, private sector and individuals.

39.7 (-0.7)
45.1

18.1%

Post-completion reviews

Whether the country conducts post-completion reviews on infrastructure projects to ensure the forecast outcomes are being achieved.

No
-

15.1%

Shareholder governance

Measures the governance practices that protect shareholders through three dimensions: the extent of shareholder rights index (shareholders’ rights and role in major corporate decisions), the extent of ownership and control index (governance safeguards protecting shareholders from undue board control and entrenchment), and the extent of corporate transparency index (corporate transparency on ownership stakes).

43.3
40.2

12.8%

Political stability and absence of violence score

Measures perceptions of the likelihood of political instability and/or politically-motivated violence, including terrorism. Estimate gives the country's score on the aggregate indicator, in units of a standard normal distribution i.e. ranging from approximately -2.5 to 2.5.

45.7 (-1.0)
46.1

5%

Infrastructure or PPP agency

Whether an infrastructure agency exists to coordinate an integrated approach to infrastructure delivery and policy.

Yes
-

Peru

Upper middle Income Countries Average

31.3 (+1.3)
37.7
39.7 (-0.7)
45.1
No
-
43.3
40.2
45.7 (-1.0)
46.1
Yes
-

Country Overview Data

Peru has prioritised infrastructure investment, creating a plan to attract the necessary investment to fund its infrastructure projects and close the infrastructure gap. Peru’s regulatory environment supports the creation of businesses promoting competition and investment. Despite a resilient financial sector, the impact of the COVID-19 pandemic, low GDP growth and lack of liquidity in the capital market may hinder Peru’s ability to attract capital and deliver infrastructure projects.
GDP per capita

7,047 USD

Population

32.5 million persons

Infrastructure quality

62.3 (0-100 best)

Infrastructure investment

4.8% of GDP

Private infrastructure investment

1,643 5-year average, USD millions

Infrastructure gap

0.9% of GDP

GDP

229.0 USD billion

GDP growth rate

2.6%

GDP per capita growth rate

0.6%

Gini coefficient

43.3 (0-100 worst)

Gross Government Debt

27.0% of GDP

Inflation rate

2.2%

Summary credit rating

65.0 (0-100 best)

Unemployment rate

2.9%

Urbanisation ratio

78.0% of total population

Road connectivity

64.0 (0-100 best)

Quality of road infrastructure

3.2 (1-7 best)

Efficiency of train services

2.9 (1-7 best)

Efficiency of air transport services

4.3 (1-7 best)

Efficiency of seaport services

3.8 (1-7 best)

Electricity access

95.0% of population

Electricity supply quality

10.6% of output lost

Exposure to unsafe drinking water

18.5% of population

Reliability of water supply

4.5 (1-7 best)

Digital Adoption Index

0.6 (0-1 best)

Mobile-broadband subscriptions

65.7 per 100 population

Fixed-broadband Internet subscriptions

7.3 per 100 population