Peru has experienced significant improvements in growth, well-being and poverty reduction since the introduction of macroeconomic reforms, economic openness and more effective social programmes in the 1990s. However, the country still faces structural challenges if it is to escape the middle-income trap and consolidate its emerging middle class. The quantitative and qualitative analyses conducted as part of this Multi-dimensional Country Review offer a diagnosis of these barriers to sustainable and inclusive development. In particular, this chapter presents the results of the OECD well-being analysis, which paints a comprehensive picture of people’s material living conditions and quality of life in Peru. It also summarises the main bottlenecks to inclusive development, studied in more depth in the chapters that follow. These include health, education and skills, the labour market, innovation, transport infrastructure and logistics, governance, and trust in institutions. These dimensions have considerable implications for the levels of productivity, inequalities and labour informality in Peru.