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IMD World Competitiveness Yearbook 2021, Digital 2021, Talent 2021: summaries

COUNTRY PERU
PROFILE
WORLD COMPETITIVENESS
RANKING 2021
All data are available from the
World Competitiveness Online.

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1
COMPETITIVENESS TRENDS - OVERALL

PERU
OVERALL PERFORMANCE (64 countries) BASIC FACTS Rank

2017 2018 2019 2020 2021 Capital Lima

2020
Land area (square km '000) 1,285

54 52 Exchange Rate (per $) 3.495

2020
55 55
58 2020
Population - market size (millions) 32.82 25
2020
CHALLENGES IN 2021 Gross Domestic Product (GDP) (US$ billions) 203.8 45
•Strengthen
Strengthen
thethe health
health system.
system. 2020
GDP (PPP) per capita (US$) 12,113 58
• Reactivate the economy by increasing productivity and
Reactivate the economy by increasing productivity and
competitiveness. 2020
Real GDP growth (%) -11.1 63
• Reduce extreme poverty and increase quality employment. 2020
• Promote an efficient and decentralized education system. Consumer price inflation (%) 1.83 40
• Develop a more efficient and effective public management. Unemployment rate (%) 7.41
2020
39
2020
Labor force (millions) 16.10 24
2020
Current account balance (% of GDP) 0.48 37
2019
Direct investment stocks inward ($bn) 115.3 41
Provided
CENTRUMby:
PUCP Direct investment flows inward (% of GDP) 3.85
2019
17
CENTRUM PUCP

COMPETITIVENESS LANDSCAPE
Economic Performance Government Efficiency Business Efficiency Infrastructure

Technological Infrastructure
International Investment

Health and Environment

Productivity & Efficiency
Institutional Framework

Scientific Infrastructure
Management Practices

Attitudes and Values

Societal Framework
Domestic Economy

Business Legislation

Basic Infrastructure
International Trade

Public Finance

Labor Market
Employment

Tax Policy

Education
Finance
Prices

26 27
36
39
44 45 44
53 52
57 57 56 56 55
59 58 60
62 61 61

PEER GROUPS RANKINGS

THE AMERICAS (9 countries) POPULATIONS > 20 MILLION (29 countries)

2017 2018 2019 2020 2021 2017 2018 2019 2020 2021
22
5 4 25 24 25
6 6 7 26

2
 COMPETITIVENESS EVOLUTION & ATTRACTIVENESS INDICATORS

PERU
COMPETITIVENESS EVOLUTION
The criteria below highlight the 15 biggest Improvements and the 15 biggest Declines in the overall performance of the economy. They are
determined by the largest percentage changes in the value of each criterion from one yearbook to the next.

WCY WCY WCY WCY

IMPROVEMENTS 2020 2021 DECLINES 2020 2021
1.2.02 Current account balance -1.53 0.48 1.1.15 Real GDP growth per capita 1.11 -12.01

3.3.01 Banking sector assets 60.15 86.24 1.1.18 Gross fixed capital formation - real growth 2.72 -17.30

4.3.16 Patent applications per capita 0.42 0.56 3.2.14 Labor force long-term growth 1.47 -8.66

4.4.26 Pollution problems 3.62 4.38 1.1.14 Real GDP growth 2.2 -11.1

1.1.13 Economic complexity index -0.60 -0.48 2.1.02 Government budget surplus/deficit (%) -1.37 -8.36

4.3.22 Knowledge transfer 3.70 4.33 1.4.04 Employment - long-term growth 3.17 -11.74

2.5.13 Unemployment rate - gender ratio 1.29 1.07 2.3.08 Exchange rate stability 0.008 0.020

1.5.01 Consumer price inflation 2.14 1.83 1.2.12 Exports of commercial services ($bn) 7.71 3.09

4.2.07 Internet users 522 596 1.2.13 Exports of commercial services (%) 3.35 1.51

1.5.06 Gasoline prices 1.29 1.12 2.5.04 Risk of political instability 4.19 1.95

3.2.06 Working hours 1,906 2,140 2.3.13 Bribery and corruption 1.45 0.80

4.3.18 Number of patents in force 0.8 0.9 4.5.17 University education index 1.49 0.83

2.4.17 Unemployment legislation 3.86 4.23 2.3.11 Transparency 4.14 2.33

3.4.09 Entrepreneurship 5.34 5.80 2.3.10 Adaptability of government policy 5.01 3.43

4.2.18 Cyber security 4.41 4.73 2.1.04 Total general government debt (%) 27.12 35.36

KEY ATTRACTIVENESS INDICATORS

From a list of 15 indicators, respondents of the Executive Opinion Survey were asked to select 5 that they perceived as the key
attractiveness factors of their economy. The chart shows the percentage of responses per indicator from the highest number of responses
to the lowest.

Dynamism of the economy 70.5%

Access to financing 48.7%
Cost competitiveness 48.7%
Business-friendly environment 46.2%
Open and positive attitudes 43.6%
Effective labor relations 35.9%
Skilled workforce 30.8%
Policy stability & predictability 29.5%
Quality of corporate governance 23.1%
Competitive tax regime 19.2%
Effective legal environment 17.9%
High educational level 11.5%
Reliable infrastructure 10.3%
Strong R&D culture 10.3%
Competency of government 3.8%
0% 10% 20% 30% 40% 50% 60% 70% 80%

3
WORLD COMPETITIVENESS
DIGITAL RANKING 2021

All data are available from the

World Competitiveness Online.

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4
DIGITAL TRENDS - OVERALL

PERU
OVERALL PERFORMANCE (64 countries)
Overall Factors
Alpha AlphaLabel
Beta BetaLabel Gamma GammaLabel Sub-Factors
1 2 2 2 2 2 2
4 4 4 2 2
6.5 4 4 2 2
8.5 4 4 259 2 59 41 60
11 4 4 2 2

Talent Training & education Scientific concentration

Knowledge

57 56 49 43 58

Regulatory framework Capital Technological framework

Technology

54 54 39 56
The direction of the triangle indicates the
performance change from the last year:
Adaptive attitudes Business agility IT integration
 improved or stable Future readiness
declined

OVERALL & FACTORS - 5 years 2017 2018 2019 2020 2021

OVERALL 62 60 61 55 57

Knowledge 62 60 61 55 59

Technology 57 57 58 58 56

Future readiness 58 60 59 55 54

COMPETITIVENESS & DIGITAL RANKINGS

2017 2018 2019 2020 2021

Digital 52
Competitiveness 55 54 55 55
57
N.B. This graph provides only a 60 61 58
comparison of the country’s 62
performance in the two rankings.

PEER GROUPS RANKINGS

THE AMERICAS (9 countries) POPULATIONS > 20 MILLION (29 countries)

2017 2018 2019 2020 2021 2017 2018 2019 2020 2021

6 6 22
8 8 8 28 27 28 24

5
 FACTORS BREAKDOWN - STRENGTHS AND WEAKNESSES

u Overall top strengths PERU

w Overall top weaknesses

KNOWLEDGE

Subfactors 2017 2018 2019 2020 2021

Talent 61 58 59 58 59
Training & education 60 43 42 39 41
Scientific concentration 63 62 62 59 60

Talent Rank Training & education Rank Scientific concentration Rank

Educational assessment PISA - Math 52 Employee training 56 w Total expenditure on R&D (%) 59
International experience 37 Total public expenditure on education 48 Total R&D personnel per capita 57
Foreign highly-skilled personnel 26 u Higher education achievement 5 Female researchers 45
w Management of cities 60 Pupil-teacher ratio (tertiary education) 52 R&D productivity by publication 30
w Digital/Technological skills 61 u Graduates in Sciences 10 Scientific and technical employment 56
Net flow of international students - Women with degrees 38 High-tech patent grants 55
Robots in Education and R&D 41

TECHNOLOGY

Subfactors 2017 2018 2019 2020 2021

Regulatory framework 51 49 50 49 49
Capital 48 47 45 37 43
Technological framework 61 59 61 59 58

Regulatory framework Rank Capital Rank Technological framework Rank

Starting a business 55 IT & media stock market capitalization 53 w Communications technology 60
Enforcing contracts 46 Funding for technological development 54 Mobile Broadband subscribers 49
u Immigration laws 15 Banking and financial services 45 w Wireless broadband 60
Development & application of tech. 51 Country credit rating 41 Internet users 58
Scientific research legislation 54 Venture capital 41 Internet bandwidth speed 57
Intellectual property rights 53 u Investment in Telecommunications 9 High-tech exports (%) 58

FUTURE READINESS

Subfactors 2017 2018 2019 2020 2021

Adaptive attitudes 61 59 49 54 54
Business agility 50 50 59 47 39
IT integration 59 59 59 58 56

Adaptive attitudes Rank Business agility Rank IT integration Rank

E-Participation 44 Opportunities and threats 48 E-Government 54
Internet retailing 55 World robots distribution 55 Public-private partnerships 41
Tablet possession 53 Agility of companies 47 Cyber security 47
Smartphone possession 45 Use of big data and analytics 48 Software piracy 53
Attitudes toward globalization 30 Knowledge transfer 49
u Entrepreneurial fear of failure 8

6
WORLD TALENT
RANKING 2021
All data are available from the
World Competitiveness Online.

Visit our eShop

7
Talent Ranking 2021

PERU
OVERALL PERFORMANCE (64 countries)
The direction of the triangle indicates
Alpha the
AlphaLabel Beta BetaLabel Gamma GammaLabel
performance change from the last year:
1 2 2 2 2 2 20172 2018 2019 2020 2021
 improved or stable
4
declined 4 4 2 2
61 44

46
47 47
Investment & Overall
Development
Investment & 50 50
51
62 50 Development
Appeal
52
53
54
55
Appeal Readiness
56
57 57
58 58
61
61
62
Readiness

Investment & Development Value 2021 Rank

Total public expenditure on education Percentage of GDP 3.8 % 47
Total public exp. on education per student Spending per enrolled pupil/student, all levels 1,055 US$ 55
Pupil-teacher ratio (primary education) Ratio of students to teaching staff 24.08 ratio 57
Pupil-teacher ratio (secondary education) Ratio of students to teaching staff 22.87 ratio 56
Apprenticeships are sufficiently implemented 4.95 Survey [0..10] 36
Employee training is a high priority in companies 4.89 Survey [0..10] 56
u Female labor force Percentage of total labor force 44.52 % 41
w Health infrastructure meets the needs of society 1.98 Survey [0..10] 63

Appeal Value 2021 Rank

u Cost-of-living index Index of a basket of goods & services in the main city, including housing (New York City = 100) 67.70 index 24
w Attracting and retaining talents is a priority in companies 5.33 Survey [0..10] 60
Worker motivation in companies is high 5.23 Survey [0..10] 45
Brain drain (well-educated and skilled people) does not hinder competitiveness in your economy 4.15 Survey [0..10] 39
Quality of life is high 4.55 Survey [0..10] 51
u Foreign highly-skilled personnel are attracted to your country's business environment 5.67 Survey [0..10] 26
Remuneration in services professions Gross annual income including supplements such as bonuses, US$ 13,359 US$ 42
Remuneration of management Total base salary plus bonuses and long-term incentives, US$ 163,925 US$ 29
u Collected personal income tax On profits, income and capital gains, as a percentage of GDP 1.40 % 8
Justice is fairly administered 2.28 Survey [0..10] 58
w Exposure to particle pollution Mean population exposure to PM2.5, Micrograms per cubic metre 31.06 micrograms 58

Readiness Value 2021 Rank

w Labor force growth Percentage change -9.73 % 64
Skilled labor is readily available 4.33 Survey [0..10] 51
Finance skills are readily available 5.24 Survey [0..10] 52
International experience of senior managers is generally significant 5.30 Survey [0..10] 37
Competent senior managers are readily available 4.38 Survey [0..10] 52
w Primary and secondary education meets the needs of a competitive economy 3.35 Survey [0..10] 60
u Graduates in Sciences % of graduates in ICT, Engineering, Math & Natural Sciences 29.64 % 11
University education meets the needs of a competitive economy 4.58 Survey [0..10] 56
Management education meets the needs of the business community 5.15 Survey [0..10] 52
Language skills are meeting the needs of enterprises 4.10 Survey [0..10] 56
Student mobility inbound Foreign tertiary-level students per 1000 inhabitants - number -
Educational assessment - PISA PISA survey of 15-year olds 402 Average 54

8
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