{
  "title": "Peru: Selected Issues",
  "publication": "IMF Staff Country Reports, May 21, 2024",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2024/05/20/peru-selected-issues-549205",
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  "summary": "The Selected Issues paper focuses on productivity and growth in Peru. Firms have maintained smaller sizes to avoid the application of a profit-sharing legislation, which has resulted in lower productivity.",
  "sections": [
    {
      "heading": "Executive summary",
      "content": "- The Selected Issues paper focuses on productivity and growth in Peru.\n- Firms have maintained smaller sizes to avoid the application of a profit-sharing legislation, which has resulted in lower productivity.\n- After a decade of high economic growth averaging over 6 percent per year, potential growth has been falling since 2014.\n- A much slower pace of investment and human capital accumulation, but most notably a decline in total factor productivity growth, has driven the decline in potential growth.\n- Firm-level productivity has worsened, and the decline has been broad-based across the economy.\n- Special corporate tax regimes and labor legislations and regulations have created barriers to productivity growth."
    },
    {
      "heading": "Key findings and drivers",
      "content": "- Firms choose smaller sizes to avoid profit-sharing legislation, leading to lower productivity.\n- Potential growth declined after showing a decade-long average growth rate of over 6 percent per year.\n- The decline in potential growth is driven by:\n  - A much slower pace of investment.\n  - A much slower pace of human capital accumulation.\n  - A decline in total factor productivity growth.\n- The productivity decline is broad-based across sectors at the firm level.\n- Special corporate tax regimes and labor legislations and regulations act as barriers to productivity growth."
    },
    {
      "heading": "Policy implications and recommendations",
      "content": "- Reform regulations that impose excessive costs to formalizing or growing a business to raise productivity.\n- Introduce greater labor market flexibility to:\n  - Ensure workers can transition to productive sectors of the economy.\n  - Reduce labor informality."
    },
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      "heading": "Publication metadata (from source)",
      "content": "- Publication title: Peru: Selected Issues\n- Publication date: May 21, 2024\n- Series: Country Report No. 2024/134\n- Pages: 42\n- Volume: 2024\n- Issue: 134\n- DOI: https://doi.org/10.5089/9798400276729.002\n- ISBN: 9798400276729\n- ISSN: 1934-7685\n- Subjects/Keywords: Artificial intelligence; Climate change; Environment; International organization; Monetary policy; Natural disasters; Potential output; Production; Productivity; Technology; Artificial intelligence; B. artificial intelligence; B. Measuring productivity; building RESILIENCE; Caribbean; Climate change; El Niño shock; Global; labor force complementarity; Natural disasters; Potential output; Productivity; total factor productivity growth\n\nSource: Peru: Selected Issues, IMF Staff Country Reports, May 21, 2024.\n\n---\n\n Content in this bundle\n\n- Peru: Selected Issues; IMF Country Report No. 24/134; May 2, 2024\n  - Peru: Selected Issues; IMF Country Report No. 24/134; May 2, 2024 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Peru: Selected Issues; IMF Country Report No. 24/134; May 2, 2024 (PDF){rel=\"external\" type=\"application/pdf\"}"
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    "Published: May 21, 2024",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9798400276729.002",
    "The Selected Issues paper focuses on productivity and growth in Peru.",
    "Firms have maintained smaller sizes to avoid the application of a profit-sharing legislation, which has resulted in lower productivity.",
    "After a decade of high economic growth averaging over 6 percent per year, potential growth has been falling since 2014.",
    "A much slower pace of investment and human capital accumulation, but most notably a decline in total factor productivity growth, has driven the decline in potential growth.",
    "Firm-level productivity has worsened, and the decline has been broad-based across the economy.",
    "Special corporate tax regimes and labor legislations and regulations have created barriers to productivity growth.",
    "Firms choose smaller sizes to avoid profit-sharing legislation, leading to lower productivity.",
    "Potential growth declined after showing a decade-long average growth rate of over 6 percent per year.",
    "The decline in potential growth is driven by:",
    "The productivity decline is broad-based across sectors at the firm level.",
    "Special corporate tax regimes and labor legislations and regulations act as barriers to productivity growth.",
    "Reform regulations that impose excessive costs to formalizing or growing a business to raise productivity.",
    "Introduce greater labor market flexibility to:",
    "Publication title: Peru: Selected Issues",
    "Publication date: May 21, 2024",
    "Series: Country Report No. 2024/134",
    "Pages: 42",
    "Volume: 2024",
    "Issue: 134",
    "DOI: https://doi.org/10.5089/9798400276729.002",
    "ISBN: 9798400276729",
    "ISSN: 1934-7685",
    "Subjects/Keywords: Artificial intelligence; Climate change; Environment; International organization; Monetary policy; Natural disasters; Potential output; Production; Productivity; Technology; Artificial intelligence; B. artificial intelligence; B. Measuring productivity; building RESILIENCE; Caribbean; Climate change; El Niño shock; Global; labor force complementarity; Natural disasters; Potential output; Productivity; total factor productivity growth",
    "**Peru: Selected Issues; IMF Country Report No. 24/134; May 2, 2024**"
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