Bringing Prosperity to Life


Ranked 64th of 149

At a glance


64 th on the Legatum
Prosperity Index™



In the Prosperity Sub-Index rankings, Peru performs best on Natural Environment and Business Environment and scores lowest on the Safety & Security sub-index.

Visit our Rankings table to see how Peru compares to other countries.

Prosperity Gap

The ‘Prosperity Gap’ takes a country's GDP and uses it as the yardstick to measure a nation's expected Prosperity Index ranking.

Peru remains just below neutral prosperity, still achieving a deficit despite progress in numerous sub-indices. Compared to several of its Latin American counterparts, this is nothing to be too concerned about, however improvements in Health, Education, and Safety & Security could go a long way to pushing it into a surplus.

In the chart above, each dot represents a country. The curve shows the general tendency with which prosperity increases as GDP per capita increases. If a country falls below the curve, then we can say that compared to all other countries, it is under-delivering prosperity for its citizens. Likewise, if a country rises above the curve, then we can say that it is over-delivering prosperity for its citizens. Learn more about the Prosperity Gap here.

Alternatively, have a look at the Prosperity Gap view on our Rankings table for a full list of countries and to see how each of them are performing on the various sub-indices.


Although Peru has declined in several areas, economically it only continues to improve, joining the coveted group of countries that have improved both their Economic Quality and Business Environment. Satisfaction with standards of living has increased to nearly 70% among Peruvians, poverty at the absolute line has decreased below 4% of the population, and labour market flexibility has improved. Furthermore, access to credit is on the rise, reflected in an improved ease of doing business score and prompting greater hopefulness about the future of Peruvian entrepreneurship. Even the negatives of Peru’s economic sector can be seen in a positive light. Despite the fact that unemployment has been relatively stagnant at 4.2%, this is among the five lowest rates in the region and less than half that in countries like Colombia. Even economic growth, which has slumped, is still high by regional standards.

Peru’s scores in Economic Quality, Education, and Health, where the 2007 score is set to equal 100.
Peru has seen rapid gains in its Economic Quality over the past decade, but has failed to translate this economic progress into social progress as Health and Education have stagnated over the same period.

Despite an improving economy and business environment, Peru’s corresponding social rise has not materialised. In both the Education and Health sub-indices, Peru has slipped in ranking rather significantly, currently standing at 89th and 90th after being 78th and 80th respectively. The Prosperity Index reveals that fewer Peruvian workers have had either secondary or tertiary schooling in 2016 than was the case in 2007, and whilst literacy rates are improving across youth and adult demographics, primary school completion continues to drop from its 100% rate in 2007. Additionally, in relation to Health, satisfaction in with local healthcare is declining, obesity is on the rise alongside diabetes, and there has been a drop in the vaccination rate. There are positives within the data however, as sanitation has improved markedly and life expectancy has also seen a rise to push above 74 years for the first time.

Safety & Security is a further sub-index with both positives and negatives; firstly, upon examining the initial data, it can be seen that Peru has risen in rank from 110th in 2007 to 106th in 2016; a definite positive. However, in 2014 this sub-index reached 90th, still not a particularly outstanding ranking, but since then it has only fallen to the subsequent rank it is today. This more recent decline is concerning, particularly in the light of greater state violence towards citizens and a fall in the percentage of people who feel safe walking alone at night decreasing by 12% since 2007, as well as an increase in political terror scale from one point five to three (out of five). There are however some positives trends, with homicide deaths decreasing notably.

Personal Freedom and Social Capital have also both seen rises in rank, as Peru becomes a both more open and trusting society, rising a total of 14 ranks between the two sub-indices, thanks to an increase in satisfaction of individual freedom up to 79%, a noticeable increase in those who have helped strangers, and improved opportunities for people to meet each other and make friends. Again however, there are concerns still present, particularly within Personal Freedom, that has seen a tightening of government restrictions on religion along with a recent rise in the amount of social restrictions on religion.

However, rank gains in these areas are limited in their effect on overall prosperity unless Peru’s education and health issues can be addressed. Only when the country can effectively deliver both economic and social progress will prosperity flourish.

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How to read this graph:
When comparing multiple countries on a spider chart, data points that appear
further away from the center represent a better performance to the points that are closer to the center.