Economy of Peru
Overview
Peru's economy reflects its varied geography - an arid coastal region, the Andes further inland, and tropical lands bordering Colombia and Brazil. Abundant mineral resources are found in the mountainous areas, and Peru's coastal waters provide excellent fishing grounds. However, overdependence on minerals and metals subjects the economy to fluctuations in world prices, and a lack of infrastructure deters trade and investment. After several years of inconsistent economic performance, the Peruvian economy grew by more than 4% per year during the period 2002-06, with a stable exchange rate and low inflation. Risk premiums on Peruvian bonds on secondary markets reached historically low levels in late 2004, reflecting investor optimism regarding the government's prudent fiscal policies and openness to trade and investment. Despite the strong macroeconomic performance, underemployment and poverty have stayed persistently high. Economic growth continues to be driven by exports of minerals, textiles, and agricultural products, and by expectations for the Camisea natural gas megaproject and for other promising energy projects. Upon taking office, President GARCIA announced Sierra Exportadora, a program aimed at promoting economic growth in Peru's southern and central highlands.
GDP
Real Growth Rate
8%
Per Capita
USD 6,600
From Agriculture
9%
From Industry
26%
From Services
65%
Labour Force
Available for Work
Unknown
Working in Agriculture
0%
Working in Industry
0%
Working in Services
0%
Unemployment Rate
0%
Population Below Poverty Line
54%
Inflation Rate
2%
Investment as Percent of GDP
20%
Budget
Revenues
USD 25,500 (m)
Expenditures
USD 25,180 (m)
Public Debt
US$ 0.00 (m)
Agricultural Products
Asparagus, coffee, cotton, sugarcane, rice, potatoes, corn, plantains, grapes, oranges, coca; poultry, beef, dairy products; fish, guinea pigs
Core Industries
Mining and refining of minerals; steel, metal fabrication; petroleum extraction and refining, natural gas; fishing and fish processing, textiles, clothing, food processing
Exports
Value
USD 22,690 (m)
Commodities
Copper, gold, zinc, crude petroleum and petroleum products, coffee, potatoes, asparagus, textiles, guinea pigs
Partners
US 25.6%, China 12%, Canada 8.4%, Chile 5.9%, Japan 5.4%, Switzerland 4.2% (2006)
Imports
Value
USD 15,380 (m)
Commodities
petroleum and petroleum products, plastics, machinery, vehicles, iron and steel, wheat, paper
Partners
US 20.1%, Brazil 8.1%, Ecuador 7.5%, China 6.9%, Chile 6.4%, Colombia 6.2%, Argentina 5.2%, Venezuela 4.3% (2006)
External Debt
USD 27,930 (m)
Fiscal Year
Calendar year
