The Covid-19 pandemic hit Peru harder than any other country in the region, with the government opting for one of the longest and most extensive lockdowns that effectively closed the economy for three months. Gross domestic product (GDP) in April 2020 contracted by 39.1%, according to the Economy and Finance Ministry. Unemployment went from 6% to 16% that month. It was the single worst month in the country's modern history. Peru ended 2020 with the economy shrinking by 11.1%. Although this was the worst drop since 1989, it was actually better than expected, with a fiscal deficit of 8.9% of GDP and unemployment at 13%. The foreign debt jumped from 26.8% in 2019 to 35% in 2020. It is expected to level off at 37% in 2023.
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