Peru was one of the countries most affected by the COVID-19 pandemic in terms of health and economic impacts and the erosion of the social gains achieved in the previous decade. By July 2022, Peru had registered more than 6,000 deaths per million population because of COVID-19, placing the country among the countries with the highest COVID-related mortality rates per capita. The economy contracted by 11 percent in 2020, its biggest fall in 30 years and the largest in Latin America during that year. As a result, the national poverty rate increased to 30.1 percent, a level not seen since 2010, and extreme poverty reached 5.1 percent in 2020, comparable with the rate in 2013. By the end of 2021, the economy had recovered, but poverty and extreme poverty remained at the levels of 2012 and 2015, respectively. The magnitude of the welfare loss during the crisis revealed the fragility of the social gains that had been achieved during the previous two decades.