Peru continues to face challenges due to political instability, corruption, and social conflict. Political instability has led to a downgrade in Peru’s sovereign credit ratings, with five presidents since 2020, and a significant level of conflict between various branches and independent bodies at the national level. Peru is also preparing for general elections scheduled for April 12, 2026, which are expected to play a significant role in shaping the political landscape and addressing the country’s future direction.
Corruption is a major problem in Peru. The country ranked 31 out of 180 countries in Transparency International’s 2024 Corruption Perceptions Index. Social conflict is also a major concern, with 150 active conflicts reported in Peru as of July 2025. More than half of these conflicts (59 percent) occurred in the mining sector, which represents approximately 9.5 percent of Peru’s GDP.
The private sector has also faced challenges due to Peru’s cumbersome and inefficient government procurement processes. The U.S. Mission in Peru continues to work with the Government of Peru to encourage government contracting procedures that follow international standards.
Business owners often find it difficult to resolve disputes with the government. The U.S. Commercial Service recommends including an arbitration clause in commercial agreements. However, the judicial system is often slow to hear cases and issue decisions. Court rulings and enforcement are often inconsistent and unpredictable. Allegations of political corruption and outside interference in the judicial system are common. Firms operating in Peru have also noted difficulties in securing legal solutions to commercial disputes or enforcing arbitration awards.