How has Peru’s export-led economic boom survived political chaos?

In the early 2000s, Herbert Vilcapoma, a former drilling equipment factory worker, founded Rock Drill, a company that now provides drilling services to some of Peru's largest mining firms. Despite the country's turbulent political climate, marked by nine presidents in the past decade, frequent protests, and corruption investigations, Peru's economy has experienced uninterrupted growth, with a GDP growth rate of 3.4% in 2025.

The stability of Peru's currency, the sol, can be attributed to the country's strict macroeconomic discipline, particularly in controlling inflation and maintaining a stable exchange rate. The Central Reserve Bank of Peru (BCRP), responsible for monetary policy, has managed to keep inflation rates low, even in a region where higher inflation is common.

The Peruvian government has also sought to control public spending and debt levels, resulting in a fiscal deficit of 1.3% of GDP in June, below the 1.8% target set for 2026. Peru's export-led economic boom has been driven primarily by the mining industry, which comprises around 70% of all Peruvian exports. Copper and gold are the main commodities, with Peru being one of the top producers globally.

The growth of metal prices, driven by their critical role in the global energy transition, has further strengthened Peru's mining sector. China has played a crucial role in Peru's economic expansion, becoming the country's largest trading partner since 2014, as the country's demand for copper, iron, and other minerals surged. China's investments in Peru also account for a significant share of the country's foreign investment.