Peru Wealth Concentration Reaches 42 Percent Among Top One Percent
The richest 1 percent of Peruvians captured 42 percent of all new wealth created between 2019 and 2025, according to an analysis released on Tuesday by the nonprofit group Oxfam and reported by Al Jazeera. This stark financial divide highlights deepening social inequality in the South American country, where the poorest 50 percent of the population received just 1.4 percent of new wealth over the same period.
Growing Disparities Contrast With Shrinking Incomes for the Poorest
While the top tier of earners amassed nearly half of all newly generated riches, the broader population experienced shrinking resources. Oxfam and the Institute for Peruvian Studies co-published the ENADES 2026 National Survey on Perceptions of Inequalities, revealing that the average income for a Peruvian in the top 0.1 percent climbed by 16 percent between 2019 and 2025. Conversely, the average income for someone in the bottom half of the country dropped by 8 percent. Globally, Oxfam notes that Peru holds the second-highest concentration of income in the hands of its richest 0.1 percent.
The report shows a profound wealth gap at the individual level. The average wealth of a Peruvian in the top 0.1 percent is now 4,800 times greater than that of a resident in the bottom 50 percent, as detailed in findings covered by Oxfam. Peru’s richest man commands more wealth than the bottom 40 percent of the nation combined, having seen his personal fortune surge by 75 percent over the past 12 months and 285 percent over the past five years.
Public Disillusionment Deepens Amid Political Instability
This economic concentration has unfolded alongside severe political turmoil in Lima. Peru has been governed by nine presidents over the past decade amid constant probes, scandals, and impeachments. The latest right-wing leader, President Keiko Fujimori, took office in July following a narrow election marked by voting delays and heated political recriminations, Al Jazeera reported.
Experts argue that powerful factions have manipulated this ongoing political instability to advance their own commercial interests. Will Freeman, a fellow at the Council on Foreign Relations, described the situation to Al Jazeera as a paradox in which a narrow political-criminal-business elite retains vast power despite rapid elite rotation inside the presidential palace.
Public polling reflects widespread awareness of this dynamic. The joint survey by Oxfam and the Institute for Peruvian Studies found that 84 percent of Peruvians believe the country is governed by powerful interests shaping politics for their own benefit. Also, 77 percent of respondents stated that wealthy individuals avoid paying their fair share of taxes, while 76 percent said the same of large corporations.
Democratic Backsliding and Diminishing Judicial Oversight
Clashes between the presidency and a powerful Congress—which holds the authority to impeach executive leaders on grounds of “moral incapacity”—have repeatedly destabilized Peru’s democracy. In December 2022, then-Pedro Castillo attempted to dissolve Congress illegally, leading to his swift removal and arrest. Widespread anti-government protests followed, prompting a months-long security crackdown under successor Dina Boluarte that human rights organizations say involved widespread abuses without accountability.
In the wake of these events, the government has weakened judicial oversight and anticorruption watchdogs. Freedom House, which tracks global political freedom, downgraded Peru from “free” to “partly free” following the deadly protest crackdowns. The organization maintained its “partly free” ranking in its 2026 report, citing the erosion of judicial independence and the denial of full political rights to Indigenous communities.
Public Demand for Reform Faces Institutional Inertia
Despite deep-seated public frustration, citizens strongly favor government intervention to reverse these trends. Approximately 70 percent of survey respondents want authorities to implement direct measures to reduce inequality, which a majority blames for restricting access to healthcare, education, employment, and justice. “Inequality is not a force of nature; it is made by political choices,” Alejandra Alayza, the executive director of Oxfam in Peru, told Al Jazeera.
Frequently Asked Questions About Peru’s Wealth Gap
What percentage of new wealth did the poorest Peruvians receive?
The poorest 50 percent of Peru’s population captured just 1.4 percent of all new wealth generated between 2019 and 2025, according to Oxfam’s analysis.
How does Peru’s top income concentration rank globally?
Global data compiled by Oxfam indicates that Peru possesses the second-highest concentration of income in the hands of its richest 0.1 percent.
What do Peruvians believe about tax fairness among corporations?
The National Survey on Perceptions of Inequalities found that 76 percent of Peruvians believe large corporations avoid paying their fair share of taxes.
How has Peru’s political leadership changed over the last decade?
A continuous stream of political probes, scandals, and impeachments has resulted in Peru being governed by nine different presidents over the past 10 years.
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