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Economy of Peru


As of 2011, Peru is one of the world's fastest-growing economies owing to the economic boom experienced during the 2000s. Historically, the country's economic performance has been tied to exports, which provide hard currency to finance imports and external debt payments. Although exports have provided substantial revenue, self-sustained growth and a more egalitarian distribution of income have proven elusive.

Peruvian economic policy has varied widely over the past decades. The 1968-1975 government of Juan Velasco Alvarado introduced radical reforms, which included agrarian reform, the expropriation of foreign companies, the introduction of an economic planning system, and the creation of a large state-owned sector. These measures failed to achieve their objectives of income redistribution and the end of economic dependence on developed nations. Despite these adverse results, most reforms were not reversed until the 1990s, when the liberalising government of Alberto Fujimori ended price controls, protectionism, restrictions on foreign direct investment, and most state ownership of companies. Reforms have permitted sustained economic growth since 1993, except for a slump after the 1997 Asian financial crisis.

Services account for 53% of Peruvian gross domestic product, followed by manufacturing (22.3%), extractive industries (15%), and taxes (9.7%). Recent economic growth has been fueled by macroeconomic stability, improved terms of trade, and rising investment and consumption. Trade is expected to increase further after the implementation of a free trade agreement with the United States, which was signed on 12 April 2006. Peru's main exports are copper, gold, zinc, textiles and fish meal; its major trade partners are the United States, China, Brazil and Chile.


Economy - overview : Peru's economy reflects its varied geography - an arid lowland coastal region, the central high sierra of the Andes, the dense forest of the Amazon, with tropical lands bordering Colombia and Brazil. A wide range of important mineral resources are found in the mountainous and coastal areas, and Peru's coastal waters provide excellent fishing grounds. The Peruvian economy has been growing by an average of 6.4% per year since 2002 with a stable/slightly appreciating exchange rate and low inflation, which in 2013 is expected to be below the upper limit of the Central Bank target range of 1 to 3%. Growth has been in the 6-9% range for the last three years, due partly to a leap in private investment, especially in the extractive sector, which accounts for more than 60% of Peru's total exports. Despite Peru's strong macroeconomic performance, dependence on minerals and metals exports and imported foodstuffs subjects the economy to fluctuations in world prices. Poor infrastructure hinders the spread of growth to Peru's non-coastal areas. Peru's rapid expansion coupled with cash transfers and other programs have helped to reduce the national poverty rate by 23 percentage points since 2002, but inequality persists and continues to pose a challenge for the new Ollanta Humala administration, which has championed a policy of social inclusion and a more equitable distribution of income. Peru's free trade policy has continued under the Humala administration; since 2006, Peru has signed trade deals with the US, Canada, Singapore, China, Korea, Mexico, Japan, the European Free Trade Association, Chile, and four other countries; concluded negotiations with Venezuela, Costa Rica, and Guatemala; and begun trade talks with two other Central American countries and the Trans-Pacific Partnership. Peru also has signed a trade pact with Chile, Colombia, and Mexico called the Pacific Alliance that rivals Mercosur in combined population, GDP, and trade. The US-Peru Trade Promotion Agreement entered into force 1 February 2009, opening the way to greater trade and investment between the two economies. Although Peru has continued to attract foreign investment, political activism and protests are hampering development of some projects related to natural resource extraction.
GDP (purchasing power parity) : $344 billion (2013 est.)
GDP (official exchange rate) : $210.3 billion (2013 est.)
GDP - real growth rate : 5.1% (2013 est.)
GDP - per capita (PPP) : $11,100 (2013 est.)
Gross national saving : 22.2% of GDP (2013 est.)
GDP - composition, by end use : household consumption: 62.4%

government consumption: 10.8%

investment in fixed capital: 27%

investment in inventories: 0.1%

exports of goods and services: 24.4%

imports of goods and services: -24.7% (2013 est.)
GDP - composition by sector : agriculture: 6.2%

industry: 37.5%

services: 56.3% (2013 est.)
Labour force : 16.16 million

note: individuals older than 14 years of age (2012 est.)
Labour force - by occupation : agriculture: 25.8%

industry: 17.4%

services: 56.8% (2011)
Unemployment rate : 3.6% (2012 est.)

note: data are for metropolitan Lima; widespread underemployment
Population below poverty line : 25.8% (2012 est.)
Household income or consumption by percentage share : lowest 10%: 1.4%

highest 10%: 36.1% (2010 est.)
Distribution of family income - Gini index : 48.1 (2010)
Budget : revenues: $60.95 billion

expenditures: $58.91 billion (2013 est.)
Taxes and other revenues : 29% of GDP (2013 est.)
Budget surplus (+) or deficit (-) : 1% of GDP (2013 est.)
Public debt : 14.9% of GDP (2013 est.)

note: data cover general government debt, and includes debt instruments issued by government entities other than the treasury; the data exclude treasury debt held by foreign entities; the data include debt issued by sub national entities
Inflation rate (consumer prices) : 2.9% (2013 est.)

note: data are for metropolitan Lima, annual average
Central bank discount rate : 5.05% (31 December 2012)
Commercial bank prime lending rate : 20.3% (31 December 2013 est.)

note: domestic currency lending rate, 90 day maturity
Stock of narrow money : $32.2 billion (31 December 2013 est.)
Stock of broad money : $80.91 billion (31 December 2013 est.)
Stock of domestic credit : $37.96 billion (31 December 2013 est.)
Market value of publicly traded shares : $153.4 billion (31 December 2012)
Agriculture - products : asparagus, coffee, cocoa, cotton, sugar cane, rice, potatoes, corn, plantains, grapes, oranges, pineapples, guavas, bananas, apples, lemons, pears, coca, tomatoes, mangoes, barley, medicinal plants, palm oil, marigold, onion, wheat, dry beans; poultry, beef, pork, dairy products; guinea pigs; fish
Industries : mining and refining of minerals; steel, metal fabrication; petroleum extraction and refining, natural gas and natural gas liquefaction; fishing and fish processing, cement, glass, textiles, clothing, food processing, beer, soft drinks, rubber, machinery, electrical machinery, chemicals, furniture
Industrial production growth rate : 5% (2013 est.)
Electricity - production : 38.4 billion kWh (2012 est.)
Electricity - consumption : 34.25 billion kWh (2011 est.)
Electricity - exports : 112 million kWh (2010 est.)
Electricity - imports : 0 kWh (2012 est.)
Crude Oil - production : 160,400 bbl/day (2012 est.)
Crude Oil - exports : 15,610 bbl/day (2012 est.)
Crude Oil - imports : 99,590 bbl/day (2012 est.)
Crude Oil - proved reserves : 579.2 million bbl (1 January 2013 est.)
Refined petroleum products - production : 159,500 bbl/day (2012 est.)
Refined petroleum products - consumption : 206,900 bbl/day (2012 est.)
Refined petroleum products - exports : 82,080 bbl/day (2012 est.)
Refined petroleum products - imports : 43,480 bbl/day (2012 est.)
Natural gas - production : 32.4 billion cu m (2012)
Natural gas - consumption : 5.49 billion cu m (2010 est.)
Natural gas - exports : 8.73 billion cu m (2012 est.)
Natural gas - imports : 0 cu m (2012)
Natural gas - proved reserves : 359.6 billion cu m (1 January 2013 est.)
Current account balance : -$10.31 billion (2013 est.)
Exports : $41.48 billion (2013 est.)
Exports - commodities : copper, gold, lead, zinc, tin, iron ore, molybdenum, silver; crude petroleum and petroleum products, natural gas; coffee, asparagus and other vegetables, fruit, apparel and textiles, fish meal, fish, chemicals, fabricated metal products and machinery, alloys
Exports - partners : China 19.9%, US 15.7%, Canada 9.5%, Japan 6.6%, Spain 5.2%, Chile 4.9% (2012)
Imports : $42.13 billion (2013 est.)
Imports - commodities : petroleum and petroleum products, chemicals, plastics, machinery, vehicles, colour TV sets, power shovels, front-end loaders, telephones and telecommunication equipment, iron and steel, wheat, corn, soy bean products, paper, cotton, vaccines and medicines
Imports - partners : US 24.6%, China 14%, Brazil 6.4%, Argentina 5%, Chile 4.8%, Colombia 4.2%, Ecuador 4.1%, Mexico 4% (2012)
Reserves of foreign exchange and gold : $65.15 billion (31 December 2013 est.)
Debt - external : $50.15 billion (31 December 2013 est.)

note: public debt component of total: $20.6 billion (31 December 2009)
Stock of direct foreign investment - at home : $76.57 billion (31 December 2013 est.)
Stock of direct foreign investment - abroad : $3.165 billion (31 December 2013 est.)
Exchange rates : nuevo sol (PEN) per US dollar - 2.699 (2013 est.); 2.6376 (2012 est.); 2.8251 (2010 est.); 3.0115 (2009); 2.91 (2008)
Fiscal year : calendar year






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