Economy of Peru
Encyclopedia
The economy of Peru
is classified as upper middle income by the World Bank and is the 42nd largest in the world. Peru is, as of 2011, one of the world's fastest-growing economies owing to the economic boom experienced during the 2000s. The core of the current sound economic performance of the country is a combination of:
All of these factors have enabled Peru to make great strides in development, with improvement in government finances, poverty reduction and progress in social sectors.
Peru is an emerging, market-oriented
economy characterized by a high level of foreign trade. The inequality of opportunities has declined: between 1995 and 2006 Peru's rating on The World Bank's Human Opportunity Index improved substantially as increased public investment in water, sanitation and electric power has sustained the downward trend in inequality of opportunities. Its economy is diversified although the commodity exports is important, the trade and industry are centralized in Lima but the agricultural exports have created development in all the regions. In 2010 Peru's per capita income
(PPP
) is bordering $10,000. Peru has a high Human Development Index
score of 0.723. Poverty has steadily decreased in 18% since 2004, when nearly half the country's population was under the poverty line. 2010 data shows that around 30% of its total population is poor.
Historically, the country's economic performance has been tied to exports, which provide hard currency
to finance imports and external debt payments. Peru's main exports are copper
, gold
, zinc
, textiles, chemicals, pharmaceuticals, manufactures, machinery, services and fish meal
; its major trade partners are the United States
, China
, Brazil
, European Union and Chile
. Although exports have provided substantial revenue, self-sustained growth and a more egalitarian distribution of income have proven elusive.
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. The USA has become Peru's largest trading partner following a free trade agreement with the United States signed on April 12, 2006 and a free trade agreement with China (2009). Currently a Free Trade agreement has been sent to the EU, and is in the process of being approved. It will most likely take effect in 2012. Inflation
in 2006 was the lowest in Latin America
at only 1.8%, but increased in 2007 as oil and commodity prices rose; in the first half of 2008, it had reached about 5.5%. The unemployment rate had increased to 8.8% by January 2009; the current average wage in the country is 1,047 nuevos soles.
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. In 1990 the neoliberal government of Alberto Fujimori
ended price controls
, protectionism
, restrictions on foreign direct investment
, and most state ownership of companies. Reforms have permitted an economic growth since 1993, except for a slump after the 1997 Asian financial crisis. In 2007, the Peruvian economy experienced a growth rate of 9%, the largest in Latin America, and this repeated in 2008 with a 9.8% rate; in 2006 and 2007, the Lima Stock Exchange grew by 185.24%
and 168.3%, respectively. However, in the wake of the 2008 global crisis, growth for 2009 was only 0.9 percent, but rebounded to 8.8 percent the following year. The pro-market policies enacted by Fujimori, were continued by presidents Alejandro Toledo and Alan Garcia, While poverty of Lima is 18.5%, the national average is 30%, while the unemployment rate is 6.5% and 54% are employed formally.
Mining: Peru ranks fifth worldwide in gold production (first in Latin America), second in copper, and is among the top 5 producers of lead and zinc.
Manufacturing: Peru has developed a medium manufacturing sector. The sector now represents 23 percent of GDP and is tied heavily to mining, fishing, agriculture, construction and textiles. Manufacturing is mainly devoted to processing to gain a value-added advantage. The most promising sector is textiles, metal mechanics, food industry, agricultural industry, manufactures, chemicals, pharmaceuticals, machinery and services.
Tourism has represented a new growth industry in Peru since the early 1990s, with the government and private sector dedicating considerable energies to boosting the country's tourist destinations both to Peruvians and foreigners.
)--from 3.1% in 2000—while the trade balance registered a small deficit. Exports dropped slightly to $7.11 billion, while imports fell 2.1% to $7.20 billion. After being hit hard by El Niño in 1998, fisheries exports have recovered, and minerals and metals exports recorded large gains in 2001 and 2002, mostly as a result of the opening of the Antamina copper-zinc mine. By mid-2002, most sectors of the economy were showing gains. After several years of substantial growth, foreign direct investment not related to privatization fell dramatically in 2000 and 2001, as well as in the first half of 2002. Net international reserves at the end of May 2002 stood at $9.16 billion, up from $8.6 billion (2001), $17 billion at the end of 2006, over $20 billion in 2007, and over $35 billion in May 2008. Peru has signed a number of free trade agreements, including the 2007 United States-Peru Trade Promotion Agreement, and agreements with Chile
, Canada
, Singapore
, Thailand
and China
.
The Peruvian government actively seeks to attract both foreign and domestic investment in all sectors of the economy. International investment was spurred by the significant progress Peru made during the 1990s toward economic, social, and political stability, but it slowed again after the government delayed privatizations and as political uncertainty increased in 2000. President Alejandro Toledo has made investment promotion a priority of his government. While Peru was previously marked by terrorism, hyperinflation, and government intervention in the economy, the Government of Peru under former President Alberto Fujimori took the steps necessary to bring those problems under control. Democratic institutions, however, and especially the judiciary, remain weak.
The Government of Peru's economic stabilization and liberalization program lowered trade barriers, eliminated restrictions on capital flows, and opened the economy to foreign investment, with the result that Peru now has one of the most open investment regimes in the world. Between 1992 and 2001, Peru attracted almost $17 billion in foreign direct investment in Peru, after negligible investment until 1991, mainly from Spain
(32.35%), the United States
(17.51%), Switzerland
(6.99%), Chile
(6.63%), and Mexico
(5.53%). The basic legal structure for foreign investment in Peru is formed by the 1993 constitution, the Private Investment Growth Law, and the November 1996 Investment Promotion Law. Although Peru does not have a bilateral investment treaty with the United States, it has signed an agreement (1993) with the Overseas Private Investment Corporation (OPIC) concerning OPIC-financed loans, guarantees, and investments. Peru also has committed itself to arbitration of investment disputes under the auspices of ICSID (the World Bank
'sInternational Center for the Settlement of Investment Disputes) or other international or national arbitration tribunals.
on november of that year, one euro was worth 3.61 . It was instated in 1991, when the Peruvian government abandoned the inti
due to hyperinflation
of the currency; the nuevo sol replaced the inti at a rate of 1 nuevo sol = 1,000,000 intis. The inti itself replaced another inflated currency, the sol
, which was used between 1863 and 1985. The name sol comes from the Latin solidus
, and is also the Spanish
word for "sun
", which the ancient Inca civilization worshiped as the god Inti
.
The nuevo sol currently enjoys a low inflation rate of 1.5%. Since it was put into use, the nuevo sol's exchange rate with the United States dollar
has stayed mostly between 2.80 and 3.30 to 1. Out of all the currencies of the Latin American region, the nuevo sol is the most stable and reliable, being the least affected by the downturn in the value of the US dollar; during late 2007 and early 2008, the exchange rate fell to 2.69 to 1, which had not been seen since 1997. The exchange rate is set on a daily basis by the Banco Central de Reserva del Perú (Central Reserve Bank of Peru).
The nuevo sol is divided into 100 céntimo
s. The highest-denomination banknote is the 200 sol note; the lowest-denomination coin is the rarely-used 1 céntimo coin.
923s, while for the rest of Peru is 10%. FY 2009-2010
From 1994 through 1998, under the government of Alberto Fujimori, the economy recorded robust growth driven by foreign direct investment, almost 46% of which was related to the privatization program. The economy stagnated from 1998 through 2001, the result of the century's strongest El Niño weather phenomenon, global financial turmoil, political instability, a stalled privatization program, increased government intervention in markets, and worsening terms of trade. President Alejandro Toledo
implemented a recovery program after taking office, maintained largely orthodox economic policies, and took measures to attract investment, including restarting the privatization program. Nonetheless, political uncertainty led to GDP growth of 0.2% in 2001. The Lima Stock Exchange general index fell 34.5% in 2000 and 0.2% in 2001. Inflation remained at record lows, registering 3.7% in 2000.
The year 2001 saw deflation
of 0.1%. The government's overall budget deficit rose sharply in 1999 and 2000 to 3.2% of GDP, the result of hikes in government salaries, expenditures related to the 2000 election campaign, higher foreign debt service payments, and lower tax revenues. The government brought the deficit down to 2.5% of GDP in 2001, and set a target of 1.9% of GDP for 2002. Peru's stability brought about a substantial reduction in underemployment
, from an average of 74% from the late 1980s through 1994 to 43% in the 1995-96 period, but the rates began climbing again in 1997-2002 to over half the working population. The poverty rate remained at 54% in 2001, with 24% of Peruvians living in extreme poverty. In 2005, 18% of Peruvians were living in extreme poverty and a poverty rate at 39%. As of 2010, around 30% of its total population is poor
remained low, at about 3%, while the budget surplus is expected to remain at about 1% of GDP. Private investment should keep growing at a rate of 15% a year. Exports and imports are expected to keep rising. The unemployment and underemployment indexes (7.2% and 54%, respectively, in Lima) should keep coming down as the economy grows, other cities in Peru like Cajamarca, Ica, Cuzco and Trujillo are starting to show less unemployment nowadays. The country is likely to attract future domestic and foreign investment in tourism, agriculture, mining, petroleum and natural gas, power industries and financial institutions.
The government has signed an agreement with the IMF in which the perspectives of the economic growth are excellent. The GDP is expected to grow at 7% for the next 6 years; private investment reached 25% of the GDP in 2007, and has remained stable through 2010; and inflation is under control at an average 2% per year for the next 5 years. International Debt will reach 25% of the GDP by 2010, down from 35% in 2006, and will be only 12% of the GDP by 2015. The International Monetary Reserves of the National Reserve Bank (Dollar, Euro, Yen, Gold, and other currencies) reached US$ 27 billion by the end of 2007, and US$ 31 billion at the end of 2008.
Currently reserves are at a US $43 billion level for the third half of 2010, which slightly surpasses current total foreign debt.
Exports are growing at a pace of 25% and will reach US$ 28 billion by the end of 2007 and US$ 30 billion by the end of 2010. High technological investment is growing fast in Peru, and will be 10% of the GDP by 2010.
Hurt economically by Peruvian Air Force
interdiction efforts in the mid-1990s, drug traffickers are now using land and river routes as well as aircraft to transport cocaine
paste and, increasingly, refined cocaine to consumers around and out of the country. The Air Bridge Denial program
was suspended in April 2001 after the Peruvian Air Force and strength of the U.S. DEA misidentified a civilian aircraft as a drug trafficker and shot it down, killing two American citizens on board. Peru continues to arrest drug traffickers and seize drugs and precursor chemicals, destroy coca labs, disable clandestine airstrips, and prosecute officials involved in narcotics corruption.
Working with limited aid of the U.S. Agency for International Development (USAID), the Peruvian Government carries out alternative development programs in the leading coca-growing areas in an effort to convince coca farmers not to grow that crop. Although the government previously eradicated only coca seed beds, in 1998 and 1999 it began to eradicate mature coca being grown in national parks and elsewhere in the main coca growing valleys. In 1999 the government eradicated more than 150 km² of coca; this figure declined to 65 km² in 2000, due largely to political instability. The government agency "Contradrogas", founded in 1996, facilitates coordination among Peruvian Government agencies working on counter-narcotics issues.
's Corruption Perceptions Index
.
The Peruvian organization "Ciudadanos al Dia" has started to measure and compare transparency, costs, and efficiency in different government departments in Peru. It annually awards the best practices which has received widespread media attention. This has created competition among government agencies in order to improve.
A last case of corruption was the 2008 Peru oil scandal
.
lowest 10%:
0.8%
highest 10%:
37.5% (2000)
Inflation rate (consumer prices):
2.08% (2010)
Budget:
revenues:
$37 billion (2010 est.)
expenditures:
$40 billion, including long-term capital expenditures of $3.8 billion (2010 est.)
Industrial production growth rate:
12% (2010 est.)
Electricity - production:
45,500 GWh (2010 est.)
Electricity - production by source:
fossil fuel:
24.53%
hydro:
74.79%
nuclear:
0%
other:
0.68% (1998)
Electricity - consumption:
33,000 GWh (2002)
Electricity - exports:
1,200 kWh (2010) mainly to Ecuador
Electricity - imports:
0 kWh (2010)
Agriculture - products:
coffee
, cotton
, sugarcane
, rice
, wheat
, potato
es, plantain
s, coca
; poultry
, beef
, dairy
products, wool
; fish
Exports:
33.5 billion f.o.b. (2010 est.) of goods and products.
3.5 billion f.o.b. (2010 est.) of services.
Exports:
fish
and fish products, copper
, zinc
, gold
, molybdenum
, iron
, crude petroleum
and byproducts, lead
; coffee
, asparagus
, artichokes, paprika
, sugar
, cotton
, textiles, chemicals, pharmaceuticals, manufactures, machinery, services.
Exports - partners:
United States
30%, Mainland China
11%, Japan
6%, Chile
5% Switzerland
, Germany
, United Kingdom
, Brazil
(2006)
Imports:
$28 billion f.o.b. (2010)
Imports - commodities:
machine
ry, transport equipment, foodstuffs, petroleum
, iron
and steel
, chemicals, pharmaceuticals, electronics.
Imports - partners:
US
19%, Colombia
6%, Venezuela
5%, Chile
4%, Brazil
4% (1997)
Peru
Peru , officially the Republic of Peru , is a country in western South America. It is bordered on the north by Ecuador and Colombia, on the east by Brazil, on the southeast by Bolivia, on the south by Chile, and on the west by the Pacific Ocean....
is classified as upper middle income by the World Bank and is the 42nd largest in the world. Peru is, as of 2011, one of the world's fastest-growing economies owing to the economic boom experienced during the 2000s. The core of the current sound economic performance of the country is a combination of:
- Macroeconomic stability
- Prudent fiscal spending
- High international reserve accumulation
- External debt reduction
- Achievement of investment grade status
- Fiscal surpluses:
All of these factors have enabled Peru to make great strides in development, with improvement in government finances, poverty reduction and progress in social sectors.
Peru is an emerging, market-oriented
Market economy
A market economy is an economy in which the prices of goods and services are determined in a free price system. This is often contrasted with a state-directed or planned economy. Market economies can range from hypothetically pure laissez-faire variants to an assortment of real-world mixed...
economy characterized by a high level of foreign trade. The inequality of opportunities has declined: between 1995 and 2006 Peru's rating on The World Bank's Human Opportunity Index improved substantially as increased public investment in water, sanitation and electric power has sustained the downward trend in inequality of opportunities. Its economy is diversified although the commodity exports is important, the trade and industry are centralized in Lima but the agricultural exports have created development in all the regions. In 2010 Peru's per capita income
Per capita income
Per capita income or income per person is a measure of mean income within an economic aggregate, such as a country or city. It is calculated by taking a measure of all sources of income in the aggregate and dividing it by the total population...
(PPP
Purchasing power parity
In economics, purchasing power parity is a condition between countries where an amount of money has the same purchasing power in different countries. The prices of the goods between the countries would only reflect the exchange rates...
) is bordering $10,000. Peru has a high Human Development Index
Human Development Index
The Human Development Index is a composite statistic used to rank countries by level of "human development" and separate "very high human development", "high human development", "medium human development", and "low human development" countries...
score of 0.723. Poverty has steadily decreased in 18% since 2004, when nearly half the country's population was under the poverty line. 2010 data shows that around 30% of its total population is poor.
Historically, the country's economic performance has been tied to exports, which provide hard currency
Hard currency
Hard currency , in economics, refers to a globally traded currency that is expected to serve as a reliable and stable store of value...
to finance imports and external debt payments. Peru's main exports are copper
Copper
Copper is a chemical element with the symbol Cu and atomic number 29. It is a ductile metal with very high thermal and electrical conductivity. Pure copper is soft and malleable; an exposed surface has a reddish-orange tarnish...
, gold
Gold
Gold is a chemical element with the symbol Au and an atomic number of 79. Gold is a dense, soft, shiny, malleable and ductile metal. Pure gold has a bright yellow color and luster traditionally considered attractive, which it maintains without oxidizing in air or water. Chemically, gold is a...
, zinc
Zinc
Zinc , or spelter , is a metallic chemical element; it has the symbol Zn and atomic number 30. It is the first element in group 12 of the periodic table. Zinc is, in some respects, chemically similar to magnesium, because its ion is of similar size and its only common oxidation state is +2...
, textiles, chemicals, pharmaceuticals, manufactures, machinery, services and fish meal
Fish meal
Fish meal, or fishmeal, is a commercial product made from both whole fish and the bones and offal from processed fish. It is a brown powder or cake obtained by rendering pressing the cooked whole fish or fish trimmings to remove most of the fish oil and water, and then ground...
; its major trade partners are the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
, Brazil
Brazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...
, European Union and Chile
Chile
Chile ,officially the Republic of Chile , is a country in South America occupying a long, narrow coastal strip between the Andes mountains to the east and the Pacific Ocean to the west. It borders Peru to the north, Bolivia to the northeast, Argentina to the east, and the Drake Passage in the far...
. Although exports have provided substantial revenue, self-sustained growth and a more egalitarian distribution of income have proven elusive.
Services
Tertiary sector of industry
The tertiary sector of the economy is one of the three economic sectors, the others being the secondary sector and the primary sector .The service sector consists of the "soft" parts of the economy, i.e...
account for 53% of Peruvian gross domestic product
Gross domestic product
Gross domestic product refers to the market value of all final goods and services produced within a country in a given period. GDP per capita is often considered an indicator of a country's standard of living....
, followed by manufacturing
Secondary sector of industry
The secondary sector of the economy or industrial sector includes those economic sectors that create a finished, tangible product: production and construction.-Function:...
(22.3%), extractive industries
Primary sector of industry
The sector of an economy making direct use of natural resources. This includes agriculture, forestry and fishing, mining, and extraction of oil and gas. This is contrasted with the secondary sector, producing manufactures and other processed goods, and the tertiary sector, producing services...
(15%), and taxes (9.7%). Recent economic growth has been fueled by macroeconomic stability, improved terms of trade
Terms of trade
In international economics and international trade, terms of trade or TOT is /. In layman's terms it means what quantity of imports can be purchased through the sale of a fixed quantity of exports...
, and rising investment and consumption. The USA has become Peru's largest trading partner following a free trade agreement with the United States signed on April 12, 2006 and a free trade agreement with China (2009). Currently a Free Trade agreement has been sent to the EU, and is in the process of being approved. It will most likely take effect in 2012. Inflation
Inflation
In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time.When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money – a...
in 2006 was the lowest in Latin America
Latin America
Latin America is a region of the Americas where Romance languages – particularly Spanish and Portuguese, and variably French – are primarily spoken. Latin America has an area of approximately 21,069,500 km² , almost 3.9% of the Earth's surface or 14.1% of its land surface area...
at only 1.8%, but increased in 2007 as oil and commodity prices rose; in the first half of 2008, it had reached about 5.5%. The unemployment rate had increased to 8.8% by January 2009; the current average wage in the country is 1,047 nuevos soles.
Peruvian economic policy has varied widely over the past decades. The 1968–1975 government of Juan Velasco Alvarado
Juan Velasco Alvarado
Juan Francisco Velasco Alvarado was a left-leaning Peruvian General who ruled Peru from 1968 to 1975 under the title of "President of the Revolutionary Government."- Early life :...
introduced radical reforms, which included agrarian reform
Agrarian reform
Agrarian reform can refer either, narrowly, to government-initiated or government-backed redistribution of agricultural land or, broadly, to an overall redirection of the agrarian system of the country, which often includes land reform measures. Agrarian reform can include credit measures,...
, the expropriation of foreign companies, the introduction of an economic planning system
Economic interventionism
Economic interventionism is an action taken by a government in a market economy or market-oriented mixed economy, beyond the basic regulation of fraud and enforcement of contracts, in an effort to affect its own economy...
, and the creation of a large state-owned sector. In 1990 the neoliberal government of Alberto Fujimori
Alberto Fujimori
Alberto Fujimori Fujimori served as President of Peru from 28 July 1990 to 17 November 2000. A controversial figure, Fujimori has been credited with the creation of Fujimorism, uprooting terrorism in Peru and restoring its macroeconomic stability, though his methods have drawn charges of...
ended price controls
Price controls
Price controls are governmental impositions on the prices charged for goods and services in a market, usually intended to maintain the affordability of staple foods and goods, and to prevent price gouging during shortages, or, alternatively, to insure an income for providers of certain goods...
, protectionism
Protectionism
Protectionism is the economic policy of restraining trade between states through methods such as tariffs on imported goods, restrictive quotas, and a variety of other government regulations designed to allow "fair competition" between imports and goods and services produced domestically.This...
, restrictions on foreign direct investment
Foreign direct investment
Foreign direct investment or foreign investment refers to the net inflows of investment to acquire a lasting management interest in an enterprise operating in an economy other than that of the investor.. It is the sum of equity capital,other long-term capital, and short-term capital as shown in...
, and most state ownership of companies. Reforms have permitted an economic growth since 1993, except for a slump after the 1997 Asian financial crisis. In 2007, the Peruvian economy experienced a growth rate of 9%, the largest in Latin America, and this repeated in 2008 with a 9.8% rate; in 2006 and 2007, the Lima Stock Exchange grew by 185.24%
and 168.3%, respectively. However, in the wake of the 2008 global crisis, growth for 2009 was only 0.9 percent, but rebounded to 8.8 percent the following year. The pro-market policies enacted by Fujimori, were continued by presidents Alejandro Toledo and Alan Garcia, While poverty of Lima is 18.5%, the national average is 30%, while the unemployment rate is 6.5% and 54% are employed formally.
Agriculture
Peru is a country with many climates and geographical zones that make it a very important agricultural nation. Peru agricultural exports are highly appreciated and include artichokes, grapes, avocados, mangoes, peppers, sugarcane, organic coffee and premium-quality cotton.Industry and services
Fishing: Peru is an international leader in fishing, producing nearly 10 percent of the world's fish catch.Mining: Peru ranks fifth worldwide in gold production (first in Latin America), second in copper, and is among the top 5 producers of lead and zinc.
Manufacturing: Peru has developed a medium manufacturing sector. The sector now represents 23 percent of GDP and is tied heavily to mining, fishing, agriculture, construction and textiles. Manufacturing is mainly devoted to processing to gain a value-added advantage. The most promising sector is textiles, metal mechanics, food industry, agricultural industry, manufactures, chemicals, pharmaceuticals, machinery and services.
Tourism has represented a new growth industry in Peru since the early 1990s, with the government and private sector dedicating considerable energies to boosting the country's tourist destinations both to Peruvians and foreigners.
Natural resources
Peru's natural resources are copper, silver, gold, timber, fish, iron ore, coal, phosphate, potash, and natural gas.Foreign trade and balance of payments
In 2001 the current account deficit dropped to about 2.2% of GDP (US$1.17 billion1000000000 (number)
1,000,000,000 is the natural number following 999,999,999 and preceding 1,000,000,001.In scientific notation, it is written as 109....
)--from 3.1% in 2000—while the trade balance registered a small deficit. Exports dropped slightly to $7.11 billion, while imports fell 2.1% to $7.20 billion. After being hit hard by El Niño in 1998, fisheries exports have recovered, and minerals and metals exports recorded large gains in 2001 and 2002, mostly as a result of the opening of the Antamina copper-zinc mine. By mid-2002, most sectors of the economy were showing gains. After several years of substantial growth, foreign direct investment not related to privatization fell dramatically in 2000 and 2001, as well as in the first half of 2002. Net international reserves at the end of May 2002 stood at $9.16 billion, up from $8.6 billion (2001), $17 billion at the end of 2006, over $20 billion in 2007, and over $35 billion in May 2008. Peru has signed a number of free trade agreements, including the 2007 United States-Peru Trade Promotion Agreement, and agreements with Chile
Chile
Chile ,officially the Republic of Chile , is a country in South America occupying a long, narrow coastal strip between the Andes mountains to the east and the Pacific Ocean to the west. It borders Peru to the north, Bolivia to the northeast, Argentina to the east, and the Drake Passage in the far...
, Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
, Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
, Thailand
Thailand
Thailand , officially the Kingdom of Thailand , formerly known as Siam , is a country located at the centre of the Indochina peninsula and Southeast Asia. It is bordered to the north by Burma and Laos, to the east by Laos and Cambodia, to the south by the Gulf of Thailand and Malaysia, and to the...
and China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
.
Foreign investment
The Government of Peru's economic stabilization and liberalization program lowered trade barriers, eliminated restrictions on capital flows, and opened the economy to foreign investment, with the result that Peru now has one of the most open investment regimes in the world. Between 1992 and 2001, Peru attracted almost $17 billion in foreign direct investment in Peru, after negligible investment until 1991, mainly from Spain
Spain
Spain , officially the Kingdom of Spain languages]] under the European Charter for Regional or Minority Languages. In each of these, Spain's official name is as follows:;;;;;;), is a country and member state of the European Union located in southwestern Europe on the Iberian Peninsula...
(32.35%), the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
(17.51%), Switzerland
Switzerland
Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....
(6.99%), Chile
Chile
Chile ,officially the Republic of Chile , is a country in South America occupying a long, narrow coastal strip between the Andes mountains to the east and the Pacific Ocean to the west. It borders Peru to the north, Bolivia to the northeast, Argentina to the east, and the Drake Passage in the far...
(6.63%), and Mexico
Mexico
The United Mexican States , commonly known as Mexico , is a federal constitutional republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of...
(5.53%). The basic legal structure for foreign investment in Peru is formed by the 1993 constitution, the Private Investment Growth Law, and the November 1996 Investment Promotion Law. Although Peru does not have a bilateral investment treaty with the United States, it has signed an agreement (1993) with the Overseas Private Investment Corporation (OPIC) concerning OPIC-financed loans, guarantees, and investments. Peru also has committed itself to arbitration of investment disputes under the auspices of ICSID (the World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...
'sInternational Center for the Settlement of Investment Disputes) or other international or national arbitration tribunals.
Currency
The nuevo sol (commonly referred to simply as "sol") is the currency of Peru. The exchange rate as of April 8, 2011 is 2.78 soles to the US dollar by november of the same year the price dropped to 2.71 soles, and 4.05 soles to one euroEuro
The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...
on november of that year, one euro was worth 3.61 . It was instated in 1991, when the Peruvian government abandoned the inti
Peruvian inti
The inti was the currency of Peru between 1985 and 1991. Its ISO 4217 code was PEI and its abbreviation in local use was "I/." The inti was divided into 100 céntimos. The inti replaced the inflation-stricken sol. The new currency was named after Inti, the Inca sun god.-History:The inti was...
due to hyperinflation
Hyperinflation
In economics, hyperinflation is inflation that is very high or out of control. While the real values of the specific economic items generally stay the same in terms of relatively stable foreign currencies, in hyperinflationary conditions the general price level within a specific economy increases...
of the currency; the nuevo sol replaced the inti at a rate of 1 nuevo sol = 1,000,000 intis. The inti itself replaced another inflated currency, the sol
Peruvian sol
The sol, was the currency of Peru between 1863 and 1985. It had the ISO 4217 currency code PEH. It was subdivided into 10 dineros or 100 centavos.-History:...
, which was used between 1863 and 1985. The name sol comes from the Latin solidus
Solidus (coin)
The solidus was originally a gold coin issued by the Romans, and a weight measure for gold more generally, corresponding to 4.5 grams.-Roman and Byzantine coinage:...
, and is also the Spanish
Spanish language
Spanish , also known as Castilian , is a Romance language in the Ibero-Romance group that evolved from several languages and dialects in central-northern Iberia around the 9th century and gradually spread with the expansion of the Kingdom of Castile into central and southern Iberia during the...
word for "sun
Sun
The Sun is the star at the center of the Solar System. It is almost perfectly spherical and consists of hot plasma interwoven with magnetic fields...
", which the ancient Inca civilization worshiped as the god Inti
Inti
According to the Inca mythology, Inti is the sun god, as well a patron deity of the Inca Empire. His exact origin is not known. The most common story says he is the son of Viracocha, the god of civilization.- Worship :...
.
The nuevo sol currently enjoys a low inflation rate of 1.5%. Since it was put into use, the nuevo sol's exchange rate with the United States dollar
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
has stayed mostly between 2.80 and 3.30 to 1. Out of all the currencies of the Latin American region, the nuevo sol is the most stable and reliable, being the least affected by the downturn in the value of the US dollar; during late 2007 and early 2008, the exchange rate fell to 2.69 to 1, which had not been seen since 1997. The exchange rate is set on a daily basis by the Banco Central de Reserva del Perú (Central Reserve Bank of Peru).
The nuevo sol is divided into 100 céntimo
Céntimo
The céntimo was a currency unit of Spain and other countries which were historically influenced by Spain or Portugal . The word derived from the Latin Centum meaning "hundred"...
s. The highest-denomination banknote is the 200 sol note; the lowest-denomination coin is the rarely-used 1 céntimo coin.
Income and Consumption
Peru divides its population into five socio-economic classes, A-E, with A representing the rich; B, the upper middle class; C, the middle class; D, the working class and low income families; and E, the marginalized poor.Employment
Unemployment in Greater Lima is 3923s, while for the rest of Peru is 10%. FY 2009-2010
Greater depth
Alejandro Toledo
Alejandro Celestino Toledo Manrique is a politician who was President of Peru from 2001 to 2006. He was elected in April 2001, defeating former President Alan García...
implemented a recovery program after taking office, maintained largely orthodox economic policies, and took measures to attract investment, including restarting the privatization program. Nonetheless, political uncertainty led to GDP growth of 0.2% in 2001. The Lima Stock Exchange general index fell 34.5% in 2000 and 0.2% in 2001. Inflation remained at record lows, registering 3.7% in 2000.
The year 2001 saw deflation
Deflation (economics)
In economics, deflation is a decrease in the general price level of goods and services. Deflation occurs when the inflation rate falls below 0% . This should not be confused with disinflation, a slow-down in the inflation rate...
of 0.1%. The government's overall budget deficit rose sharply in 1999 and 2000 to 3.2% of GDP, the result of hikes in government salaries, expenditures related to the 2000 election campaign, higher foreign debt service payments, and lower tax revenues. The government brought the deficit down to 2.5% of GDP in 2001, and set a target of 1.9% of GDP for 2002. Peru's stability brought about a substantial reduction in underemployment
Underemployment
Underemployment refers to an employment situation that is insufficient in some important way for the worker, relative to a standard. Examples include holding a part-time job despite desiring full-time work, and overqualification, where the employee has education, experience, or skills beyond the...
, from an average of 74% from the late 1980s through 1994 to 43% in the 1995-96 period, but the rates began climbing again in 1997-2002 to over half the working population. The poverty rate remained at 54% in 2001, with 24% of Peruvians living in extreme poverty. In 2005, 18% of Peruvians were living in extreme poverty and a poverty rate at 39%. As of 2010, around 30% of its total population is poor
Outlook
Forecasts for the medium- and long-term remain highly positive. Peru's real GDP growth in 2007 (8.3%) was the largest in Latin America and in 2008 was an outstanding 9.8%, the highest in the world. InflationInflation
In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time.When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money – a...
remained low, at about 3%, while the budget surplus is expected to remain at about 1% of GDP. Private investment should keep growing at a rate of 15% a year. Exports and imports are expected to keep rising. The unemployment and underemployment indexes (7.2% and 54%, respectively, in Lima) should keep coming down as the economy grows, other cities in Peru like Cajamarca, Ica, Cuzco and Trujillo are starting to show less unemployment nowadays. The country is likely to attract future domestic and foreign investment in tourism, agriculture, mining, petroleum and natural gas, power industries and financial institutions.
The government has signed an agreement with the IMF in which the perspectives of the economic growth are excellent. The GDP is expected to grow at 7% for the next 6 years; private investment reached 25% of the GDP in 2007, and has remained stable through 2010; and inflation is under control at an average 2% per year for the next 5 years. International Debt will reach 25% of the GDP by 2010, down from 35% in 2006, and will be only 12% of the GDP by 2015. The International Monetary Reserves of the National Reserve Bank (Dollar, Euro, Yen, Gold, and other currencies) reached US$ 27 billion by the end of 2007, and US$ 31 billion at the end of 2008.
Currently reserves are at a US $43 billion level for the third half of 2010, which slightly surpasses current total foreign debt.
Exports are growing at a pace of 25% and will reach US$ 28 billion by the end of 2007 and US$ 30 billion by the end of 2010. High technological investment is growing fast in Peru, and will be 10% of the GDP by 2010.
Narcotics
Government prohibition of narcotics trafficking in Peru has resulted in a 70% reduction of coca leaf cultivation since 1995. The size of the narcotics industry as a part of the national economy is difficult to measure, but estimates range from $300–$600 million. An estimated 200,000 Peruvians are engaged in the production, refining, or distribution of the narcotic. Many economists believe that large flows of dollars into the banking system contribute to the traditional depression of the dollar exchange rate vis-a-vis the sol. The Central Bank engages in open market activities to prevent the price of the sol from rising to levels that would cause Peruvian exports to become prohibitively expensive.Hurt economically by Peruvian Air Force
Peruvian Air Force
The Peruvian Air Force is the branch of the Peruvian Armed Forces tasked with defending the nation and its interests through the use of air power...
interdiction efforts in the mid-1990s, drug traffickers are now using land and river routes as well as aircraft to transport cocaine
Cocaine
Cocaine is a crystalline tropane alkaloid that is obtained from the leaves of the coca plant. The name comes from "coca" in addition to the alkaloid suffix -ine, forming cocaine. It is a stimulant of the central nervous system, an appetite suppressant, and a topical anesthetic...
paste and, increasingly, refined cocaine to consumers around and out of the country. The Air Bridge Denial program
Air Bridge Denial Program
Starting in the 1990s the Central Intelligence Agency has operated an anti-narcotics program in Colombia and Peru called Air Bridge Denial . The ABD program targeted drug traffickers that transport illicit drugs through the air by forcing down suspicious aircraft, using lethal force if necessary...
was suspended in April 2001 after the Peruvian Air Force and strength of the U.S. DEA misidentified a civilian aircraft as a drug trafficker and shot it down, killing two American citizens on board. Peru continues to arrest drug traffickers and seize drugs and precursor chemicals, destroy coca labs, disable clandestine airstrips, and prosecute officials involved in narcotics corruption.
Working with limited aid of the U.S. Agency for International Development (USAID), the Peruvian Government carries out alternative development programs in the leading coca-growing areas in an effort to convince coca farmers not to grow that crop. Although the government previously eradicated only coca seed beds, in 1998 and 1999 it began to eradicate mature coca being grown in national parks and elsewhere in the main coca growing valleys. In 1999 the government eradicated more than 150 km² of coca; this figure declined to 65 km² in 2000, due largely to political instability. The government agency "Contradrogas", founded in 1996, facilitates coordination among Peruvian Government agencies working on counter-narcotics issues.
Corruption
Peru is the 72nd least corrupt country in the world according to Transparency InternationalTransparency International
Transparency International is a non-governmental organization that monitors and publicizes corporate and political corruption in international development. It publishes an annual Corruption Perceptions Index, a comparative listing of corruption worldwide...
's Corruption Perceptions Index
Corruption Perceptions Index
Since 1995, Transparency International publishes the Corruption Perceptions Index annually ranking countries "by their perceived levels of corruption, as determined by expert assessments and opinion surveys." The CPI generally defines corruption as "the misuse of public power for private...
.
The Peruvian organization "Ciudadanos al Dia" has started to measure and compare transparency, costs, and efficiency in different government departments in Peru. It annually awards the best practices which has received widespread media attention. This has created competition among government agencies in order to improve.
A last case of corruption was the 2008 Peru oil scandal
2008 Peru oil scandal
The 2008 Peru oil scandal started after a Peruvian TV station broadcast an audio tape of an alleged conversation between a government official and a lobbyist agreeing to help a firm win contracts...
.
Statistics
Household income or consumption by percentage share:lowest 10%:
0.8%
highest 10%:
37.5% (2000)
Inflation rate (consumer prices):
2.08% (2010)
Budget:
revenues:
$37 billion (2010 est.)
expenditures:
$40 billion, including long-term capital expenditures of $3.8 billion (2010 est.)
Industrial production growth rate:
12% (2010 est.)
Electricity - production:
45,500 GWh (2010 est.)
Electricity - production by source:
fossil fuel:
24.53%
hydro:
74.79%
nuclear:
0%
other:
0.68% (1998)
Electricity - consumption:
33,000 GWh (2002)
Electricity - exports:
1,200 kWh (2010) mainly to Ecuador
Electricity - imports:
0 kWh (2010)
Agriculture - products:
coffee
Coffee
Coffee is a brewed beverage with a dark,init brooo acidic flavor prepared from the roasted seeds of the coffee plant, colloquially called coffee beans. The beans are found in coffee cherries, which grow on trees cultivated in over 70 countries, primarily in equatorial Latin America, Southeast Asia,...
, cotton
Cotton
Cotton is a soft, fluffy staple fiber that grows in a boll, or protective capsule, around the seeds of cotton plants of the genus Gossypium. The fiber is almost pure cellulose. The botanical purpose of cotton fiber is to aid in seed dispersal....
, sugarcane
Sugarcane
Sugarcane refers to any of six to 37 species of tall perennial grasses of the genus Saccharum . Native to the warm temperate to tropical regions of South Asia, they have stout, jointed, fibrous stalks that are rich in sugar, and measure two to six metres tall...
, rice
Rice
Rice is the seed of the monocot plants Oryza sativa or Oryza glaberrima . As a cereal grain, it is the most important staple food for a large part of the world's human population, especially in East Asia, Southeast Asia, South Asia, the Middle East, and the West Indies...
, wheat
Wheat
Wheat is a cereal grain, originally from the Levant region of the Near East, but now cultivated worldwide. In 2007 world production of wheat was 607 million tons, making it the third most-produced cereal after maize and rice...
, potato
Potato
The potato is a starchy, tuberous crop from the perennial Solanum tuberosum of the Solanaceae family . The word potato may refer to the plant itself as well as the edible tuber. In the region of the Andes, there are some other closely related cultivated potato species...
es, plantain
Plantain
Plantain is the common name for herbaceous plants of the genus Musa. The fruit they produce is generally used for cooking, in contrast to the soft, sweet banana...
s, coca
Coca
Coca, Erythroxylum coca, is a plant in the family Erythroxylaceae, native to western South America. The plant plays a significant role in many traditional Andean cultures...
; poultry
Poultry
Poultry are domesticated birds kept by humans for the purpose of producing eggs, meat, and/or feathers. These most typically are members of the superorder Galloanserae , especially the order Galliformes and the family Anatidae , commonly known as "waterfowl"...
, beef
Beef
Beef is the culinary name for meat from bovines, especially domestic cattle. Beef can be harvested from cows, bulls, heifers or steers. It is one of the principal meats used in the cuisine of the Middle East , Australia, Argentina, Brazil, Europe and the United States, and is also important in...
, dairy
Dairy
A dairy is a business enterprise established for the harvesting of animal milk—mostly from cows or goats, but also from buffalo, sheep, horses or camels —for human consumption. A dairy is typically located on a dedicated dairy farm or section of a multi-purpose farm that is concerned...
products, wool
Wool
Wool is the textile fiber obtained from sheep and certain other animals, including cashmere from goats, mohair from goats, qiviut from muskoxen, vicuña, alpaca, camel from animals in the camel family, and angora from rabbits....
; fish
Fish
Fish are a paraphyletic group of organisms that consist of all gill-bearing aquatic vertebrate animals that lack limbs with digits. Included in this definition are the living hagfish, lampreys, and cartilaginous and bony fish, as well as various extinct related groups...
Exports:
33.5 billion f.o.b. (2010 est.) of goods and products.
3.5 billion f.o.b. (2010 est.) of services.
Exports:
fish
Fish
Fish are a paraphyletic group of organisms that consist of all gill-bearing aquatic vertebrate animals that lack limbs with digits. Included in this definition are the living hagfish, lampreys, and cartilaginous and bony fish, as well as various extinct related groups...
and fish products, copper
Copper
Copper is a chemical element with the symbol Cu and atomic number 29. It is a ductile metal with very high thermal and electrical conductivity. Pure copper is soft and malleable; an exposed surface has a reddish-orange tarnish...
, zinc
Zinc
Zinc , or spelter , is a metallic chemical element; it has the symbol Zn and atomic number 30. It is the first element in group 12 of the periodic table. Zinc is, in some respects, chemically similar to magnesium, because its ion is of similar size and its only common oxidation state is +2...
, gold
Gold
Gold is a chemical element with the symbol Au and an atomic number of 79. Gold is a dense, soft, shiny, malleable and ductile metal. Pure gold has a bright yellow color and luster traditionally considered attractive, which it maintains without oxidizing in air or water. Chemically, gold is a...
, molybdenum
Molybdenum
Molybdenum , is a Group 6 chemical element with the symbol Mo and atomic number 42. The name is from Neo-Latin Molybdaenum, from Ancient Greek , meaning lead, itself proposed as a loanword from Anatolian Luvian and Lydian languages, since its ores were confused with lead ores...
, iron
Iron
Iron is a chemical element with the symbol Fe and atomic number 26. It is a metal in the first transition series. It is the most common element forming the planet Earth as a whole, forming much of Earth's outer and inner core. It is the fourth most common element in the Earth's crust...
, crude petroleum
Petroleum
Petroleum or crude oil is a naturally occurring, flammable liquid consisting of a complex mixture of hydrocarbons of various molecular weights and other liquid organic compounds, that are found in geologic formations beneath the Earth's surface. Petroleum is recovered mostly through oil drilling...
and byproducts, lead
Lead
Lead is a main-group element in the carbon group with the symbol Pb and atomic number 82. Lead is a soft, malleable poor metal. It is also counted as one of the heavy metals. Metallic lead has a bluish-white color after being freshly cut, but it soon tarnishes to a dull grayish color when exposed...
; coffee
Coffee
Coffee is a brewed beverage with a dark,init brooo acidic flavor prepared from the roasted seeds of the coffee plant, colloquially called coffee beans. The beans are found in coffee cherries, which grow on trees cultivated in over 70 countries, primarily in equatorial Latin America, Southeast Asia,...
, asparagus
Asparagus
Asparagus officinalis is a spring vegetable, a flowering perennialplant species in the genus Asparagus. It was once classified in the lily family, like its Allium cousins, onions and garlic, but the Liliaceae have been split and the onion-like plants are now in the family Amaryllidaceae and...
, artichokes, paprika
Paprika
Paprika is a spice made from the grinding of dried fruits of Capsicum annuum . In many European languages, the word paprika refers to bell peppers themselves. The seasoning is used in many cuisines to add color and flavor to dishes. Paprika can range from mild to hot...
, sugar
Sugar
Sugar is a class of edible crystalline carbohydrates, mainly sucrose, lactose, and fructose, characterized by a sweet flavor.Sucrose in its refined form primarily comes from sugar cane and sugar beet...
, cotton
Cotton
Cotton is a soft, fluffy staple fiber that grows in a boll, or protective capsule, around the seeds of cotton plants of the genus Gossypium. The fiber is almost pure cellulose. The botanical purpose of cotton fiber is to aid in seed dispersal....
, textiles, chemicals, pharmaceuticals, manufactures, machinery, services.
Exports - partners:
United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
30%, Mainland China
Mainland China
Mainland China, the Chinese mainland or simply the mainland, is a geopolitical term that refers to the area under the jurisdiction of the People's Republic of China . According to the Taipei-based Mainland Affairs Council, the term excludes the PRC Special Administrative Regions of Hong Kong and...
11%, Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
6%, Chile
Chile
Chile ,officially the Republic of Chile , is a country in South America occupying a long, narrow coastal strip between the Andes mountains to the east and the Pacific Ocean to the west. It borders Peru to the north, Bolivia to the northeast, Argentina to the east, and the Drake Passage in the far...
5% Switzerland
Switzerland
Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....
, Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
, United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
, Brazil
Brazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...
(2006)
Imports:
$28 billion f.o.b. (2010)
Imports - commodities:
machine
Machine
A machine manages power to accomplish a task, examples include, a mechanical system, a computing system, an electronic system, and a molecular machine. In common usage, the meaning is that of a device having parts that perform or assist in performing any type of work...
ry, transport equipment, foodstuffs, petroleum
Petroleum
Petroleum or crude oil is a naturally occurring, flammable liquid consisting of a complex mixture of hydrocarbons of various molecular weights and other liquid organic compounds, that are found in geologic formations beneath the Earth's surface. Petroleum is recovered mostly through oil drilling...
, iron
Iron
Iron is a chemical element with the symbol Fe and atomic number 26. It is a metal in the first transition series. It is the most common element forming the planet Earth as a whole, forming much of Earth's outer and inner core. It is the fourth most common element in the Earth's crust...
and steel
Steel
Steel is an alloy that consists mostly of iron and has a carbon content between 0.2% and 2.1% by weight, depending on the grade. Carbon is the most common alloying material for iron, but various other alloying elements are used, such as manganese, chromium, vanadium, and tungsten...
, chemicals, pharmaceuticals, electronics.
Imports - partners:
US
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
19%, Colombia
Colombia
Colombia, officially the Republic of Colombia , is a unitary constitutional republic comprising thirty-two departments. The country is located in northwestern South America, bordered to the east by Venezuela and Brazil; to the south by Ecuador and Peru; to the north by the Caribbean Sea; to the...
6%, Venezuela
Venezuela
Venezuela , officially called the Bolivarian Republic of Venezuela , is a tropical country on the northern coast of South America. It borders Colombia to the west, Guyana to the east, and Brazil to the south...
5%, Chile
Chile
Chile ,officially the Republic of Chile , is a country in South America occupying a long, narrow coastal strip between the Andes mountains to the east and the Pacific Ocean to the west. It borders Peru to the north, Bolivia to the northeast, Argentina to the east, and the Drake Passage in the far...
4%, Brazil
Brazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...
4% (1997)
Historical GDP Growth Rate 1990 - 2011
| Year | GDP rate |
| 1990 | -5.1% |
| 1991 | 2.2% |
| 1992 | -0.4% |
| 1993 | 4.8% |
| 1994 | 12.8% |
| 1995 | 8.6% |
| 1996 | 2.5% |
| 1997 | 6.9% |
| 1998 | -0.7% |
| 1999 | 0.9% |
| 2000 | 3.0% |
| 2001 | 0.2% |
| 2002 | 5.0% |
| 2003 | 4.0% |
| 2004 | 5.0% |
| 2005 | 6.8% |
| 2006 | 7.7% |
| 2007 | 8.9% |
| 2008 | 9.8% |
| 2009 | 0.9% |
| 2010 | 8.78% |
| 2011 | 7.0% (est.) |
Trade Agreements
According to the Ministry of Foreign Trade and Tourism, Peru decided to negotiate trade agreements in order to consolidate the access of Peruvian exports to its most important markets by giving them permanent benefits unlimited in time and coverage as opposed to temporary commercial preferences given unilaterally by certain countries; a system that did not allow Peruvian exporters embark in long-term export-related investments.Economic Complementation Agreement
|
FTA (Free Trade Agreement) currently in force
 United States (signed April 2006 and effective February 2009). Chile (signed August 2006 and effective march 2009) Canada (signed May 2008 and effective August 2009) Singapore (signed May 2008 and effective August 2009) Mainland China (signed April 2009 and effective march 2010) South Korea (signed march 2011 and effective August 2011) |
FTA (Free Trade Agreement) concluded
 Switzerland,  Liechtenstein,  Iceland and  Norway) (signed July 2010)) Thailand (last protocol signed November 2010) Mexico (signed April 2011) European Union (signed April 2011) Panama (signed May 2011) Costa Rica (signed May 2011) Japan (signed May 2011) |
| FTA (Free Trade Agreement) in negotiation
Trans-Pacific Strategic Economic Partnership The Trans-Pacific Partnership , also known as the Trans-Pacific Strategic Economic Partnership Agreement, is a multilateral free trade agreement that aims to further liberalise the economies of the Asia-Pacific region; specifically, Article 1.1.3 notes: “The Parties seek to support the wider... (  Australia,  Brunei, Chile, United States,  Malaysia,  New Zealand, Singapore and  Vietnam) El Salvador Guatemala Honduras Venezuela |
See also
- List of Peruvian companies
- South America Life Quality Rankings - Economy and Finance