PERU Is #49

Peru is #49 in Economic Freedom out of 176 Countries.

Every year the Heritage Foundation, a leading U.S. nonprofit, produces the Index of Economic Freedom Report and ranks how free and open each country’s economy is.

With a score of 64.8, Peru is classified as "Moderately Free":

When it’s about soccer, every Peruvian desperately wants to be #1. We need that passion where it really counts:

Want greater income and a better quality of life?

Improve economic freedom!

Evidence clearly shows that greater economic freedom leads to higher standards of living, increased job creation, improved education and healthcare, greater prosperity, and enhanced environmental stewardship.

More About Economic Freedom

What Does Being “Moderately free” Mean for Peru?

Peru’s "Moderately Free" classification on the Index of Economic Freedom highlights a fair degree of economic openness, though significant regulatory and institutional obstacles remain. For the average Peruvian, this means relatively favorable conditions for trade and investment but also enduring challenges such as corruption and weak property protections, which can inhibit personal and business growth.

What categories doES Peru DO well in?

To do well ("mostly free") a country must score 70 - 79.9. To classify as excellent ("free") a country must score 80 or higher. Peru scores relatively well in these areas (scores out of 100):

Government Spending 81.8
Trade Freedom 81.4
Tax Burden 79.1
Investment Freedom 75.0
Monetary Freedom 74.0

Solutions

Peru's worst 3 categories:

Government Integrity 36.3
Property Rights 44.9
Judicial Effectiveness 48.2

Government Integrity in Peru, with a score of 36.3 out of 100, reflects issues with corruption and transparency within public institutions. This low score affects citizens by diminishing trust in government, leading to inefficient resource allocation and limiting opportunities for growth. To improve this category, Peru could adopt stricter anti-corruption measures, improve public accountability, and ensure transparent management of government funds and resources.

Peru’s Property Rights score stands at 44.9 out of 100, indicating limited protections for ownership and weak property rights enforcement. For Peruvians, this means greater difficulty in securing property investments and a lack of confidence in the legal protections around ownership. Addressing this issue could involve judicial reforms to better protect property rights, more efficient property registration processes, and clear legal support for property disputes.

Judicial Effectiveness, scoring 48.2 out of 100, points to inefficiencies and inconsistencies in the legal system that affect the enforcement of laws. This score affects Peruvians by making legal recourse challenging and unpredictable, which can deter both domestic and foreign investment. Enhancing judicial effectiveness could involve training for legal professionals, promoting independence within the judiciary, and increasing transparency in court proceedings to build confidence in the legal system.

Peru's Economic Freedom over time:

HELP Raise Peru’s Score!