Apparently, the encryption used in the PeaZip format is the same as with the 7-zip format: 256-bit AES. This is also the way KeePass databases are encrypted. This encryption method is strong and has no known vulnerabilities (though the NSA has been trying to find one), but can be undermined by a weak password, so don't choose passwords that are repetitive or contain small subsets of characters, or passwords that will succumb to dictionary attacks.

I don't know how the strength of AES compares to OpenPGP (the standard GnuPG uses). But if you want to maximize the protection of your files, you could use both.

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