The Economy of Peru

The Economy of Peru

Peruvian Economy

Economy - 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. The Peruvian economy grew by more than 4% per year during the period 2002-06, with a stable exchange rate and low inflation. Growth jumped to 9% per year in 2007 and 2008, driven by higher world prices for minerals and metals and the government's aggressive trade liberalization strategies. Peru's rapid expansion has helped to reduce the national poverty rate by about 15% since 2002, though underemployment and inflation remain high. Despite Peru's strong macroeconomic performance, overdependence on minerals and metals subjects the economy to fluctuations in world prices, and poor infrastructure precludes the spread of growth to Peru's non-coastal areas. Not all Peruvians therefore have shared in the benefits of growth. President GARCIA's pursuit of sound trade and macroeconomic policies has cost him political support since his election. Nevertheless, he remains committed to Peru's free-trade path. The United States and Peru completed negotiations on the implementation of the U.S.-Peru Trade Promotion Agreement (PTPA), and the agreement entered into force February 1, 2009, opening the way to greater trade and investment between the two economies.


GDP - real growth rate: 9.2% (2008 est.) 9% (2007 est.) 7.6% (2006 est.)

GDP - per capita:

GDP - composition by sector: agriculture: 8.5% industry: 21.2% services: 70.3% (2008 est.)

Population below poverty line:

Household income or consumption by percentage share: lowest 10%: 1.3% highest 10%: 40.9% (2003)

Distribution of family income - Gini index: 49.8 (2005)

Inflation rate (consumer prices):

Labor force: 10.2 million (2008 est.)

Labor force - by occupation: agriculture: 0.7% industry: 23.8% services: 75.5% (2005)

Unemployment rate: 8.4% in metropolitan Lima; widespread underemployment (2008 est.)

Budget: revenues: $38.83 billion expenditures: $35.5 billion (2008 est.)

Industries: mining and refining of minerals; steel, metal fabrication; petroleum extraction and refining, natural gas; fishing and fish processing, textiles, clothing, food processing

Industrial production growth rate: 4.5% (2008 est.)

Electricity - production: 30.57 billion kWh (2008 est.)

Electricity - production by source:

Electricity - consumption: 28.97 billion kWh (2008 est.)

Electricity - exports: 0 kWh (2008 est.)

Electricity - imports: 0 kWh (2008 est.)

Oil - production: 110,800 bbl/day (2008 est.)

Oil - consumption: 170,000 bbl/day (2007 est.)

Oil - exports: 27,390 bbl/day (2007 est.)

Oil - imports: 109,000 bbl/day (2007 est.)

Oil - proved reserves: 930 million bbl (1 January 2008 est.)

Natural gas - production: 3.4 billion cu m (2008 est.)

Natural gas - consumption: 3.4 billion cu m (2008 est.)

Natural gas - exports: 0 cu m (2008 est.)

Natural gas - imports: 0 cu m (2008 est.)

Natural gas - proved reserves: 334.7 billion cu m (1 January 2008 est.)

Agriculture - products: asparagus, coffee, cocoa, cotton, sugarcane, rice, potatoes, corn, plantains, grapes, oranges, pineapples, guavas, bananas, apples, lemons, pears, coca, tomatoes, mango, barley, medicinal plants, palm oil, marigold, onion, wheat, dry beans; poultry, beef, dairy products; fish, guinea pigs

Exports: $33.27 billion f.o.b. (2008 est.)

Exports - commodities: copper, gold, zinc, crude petroleum and petroleum products, coffee, potatoes, asparagus, textiles, fishmeal

Exports - partners: US 19.5%, China 12.7%, Canada 7.6%, Japan 7.5%, Chile 5.9%, Switzerland 4.2%, Spain 4.1% (2007)

Imports: $29.08 billion f.o.b. (2008 est.)

Imports - commodities: petroleum and petroleum products, plastics, machinery, vehicles, iron and steel, wheat, paper

Imports - partners: US 20.5%, China 10.8%, Brazil 9%, Ecuador 6.1%, Argentina 5.6%, Chile 5%, Colombia 4.8% (2007)

Debt - external: $35.46 billion (31 December 2008 est.)

Economic aid - recipient:


Currency code:

Exchange rates: nuevo sol (PEN) per US dollar - 2.91 (2008 est.), 3.1731 (2007), 3.2742 (2006), 3.2958 (2005), 3.4132 (2004)

Fiscal year:

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