Soon after its founding, the city became a major commercial hub of southern Peru, accumulating commercial and administrative functions. In times of the Viceroyalty of Peru it was an important economic hub in southern Peru. It played a significant role in the history of the Republic of Peru, declaring itself "Capital of the Republic" during the government of Montero. Arequipa has also been home of many of the outstanding intellectual and political figures, as well as religious icons, in the country. In recent decades it has become an important industrial and commercial center in Peru, now being the second most industrialized city in PerĂº.
It has several industrial parks, as the city has close trade ties with Chile, Bolivia and Brazil; it also has links with cities connected by the Southern Railway and with the port of Matarani. It is known for Arequipan cuisine
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