Economy Of Peru

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. 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 was one of the fastest growing in Latin America in 2002 and 2003, growing by 5% and 4%, respectively, with the exchange rate stable and an annual inflation lower than 2%. Foreign direct investment also was strong, thanks to the ongoing Camisea natural gas pipeline project (scheduled to begin operations in 2004) and investments in gold mining. Risk premiums on Peruvian bonds on secondary markets reached historically low levels in late 2003, reflecting investor optimism and the government's fiscal restraint. Despite the strong macroeconomic performance, political intrigue and allegations of corruption continued to swirl in 2003, with the TOLEDO administration growing increasingly unpopular, and local and foreign concern rising that the political turmoil could place the country's hard-won fiscal and financial stability at risk. Moreover, as of late 2003, unemployment had yet to respond to the strong growth in economic activity, owing in part to rigid labor market regulations that act as an impediment to hiring.
 
GDP purchasing power parity - $146 billion (2004 est.)
 
GDP - real growth rate 4% (2004 est.)
 
GDP - per capita purchasing power parity - $5,100 (2004 est.)
 
GDP - composition by sector
agriculture: 8%
industry: 27%
services: 65% (2003 est.)
 
Investment gross fixed 17.7% of GDP (2004 est.)
 
Population below poverty line 54% (2003 est.)
 
Household income or consumption by percentage share
lowest 10%: 1.6%
highest 10%: 35.4% (1996)
 
Distribution of family income - Gini index 46.2 (1996)
 
Inflation rate consumer prices 2.3% (2004 est.)
 
Labor force 8.63 million (2004 est.)
 
Labor force by occupation agriculture 5.9%, mining and quarrying 0.4%, manufacturing 12.6%, construction 5.3%, commerce 26.3%, household work 4.9%, other services 44.6% (2004)
 
Unemployment rate 9.7%; widespread underemployment (2004 est.)
 
Budget
revenues: $15.86 billion
expenditures: $17.05 billion, including capital expenditures of $1.6 billion (2004 est.)
 
Public debt 49.2% of GDP (2004 est.)
 
Agriculture products coffee, cotton, sugarcane, rice, wheat, potatoes, corn, plantains, coca; poultry, beef, dairy products, wool; fish
 
Industries mining of metals, petroleum, fishing, textiles, clothing, food processing, cement, auto assembly, steel, shipbuilding, metal fabrication
 
Industrial production growth rate 2% (2004 est.)
 
Electricity production 20.59 billion kWh (2001)
 
Electricity production by source
fossil fuel: 14.5%
hydro: 84.7%
other: 0.8% (2001)
nuclear: 0%
 
Electricity consumption 19.15 billion kWh (2001)
 
Electricity exports 0 kWh (2001)
 
Electricity imports 0 kWh (2001)
 
Oil production 95,100 bbl/day (2004 est.)
 
Oil consumption 161,000 bbl/day (2001 est.)
 
Oil exports NA (2001)
 
Oil imports NA (2001)
 
Oil proved reserves 614.7 million bbl (2004)
 
Natural gas production 370 million cu m (2001 est.)
 
Natural gas consumption 370 million cu m (2001 est.)
 
Natural gas exports 0 cu m (2001 est.)
 
Natural gas imports 0 cu m (2001 est.)
 
Natural gas proved reserves 245.1 billion cu m (2004)
 
Current account balance $-1.116 billion (2004 est.)
 
Exports $8.954 billion f.o.b. (2004 est.)
 
Exports commodities fish and fish products, gold, copper, zinc, crude petroleum and byproducts, lead, coffee, sugar, cotton
 
Exports partners US 27.1%, UK 12.4%, China 7.7%, Switzerland 7.6%, Chile 4.7%, Japan 4.4% (2003)
 
Imports $8.244 billion f.o.b. (2003 est.)
 
Imports commodities machinery, transport equipment, foodstuffs, petroleum, iron and steel, chemicals, pharmaceuticals
 
Imports partners US 28.6%, Spain 10%, Chile 7.5%, Brazil 5.1%, Colombia 4.5% (2003)
 
Reserves of foreign exchange gold $10.24 billion (2004 est.)
 
Debt external $29.95 billion (2004 est.)
 
Economic aid recipient $895.1 million (1995)
 
Currency nuevo sol (PEN)
 
Currency code PEN
 
Exchange rates nuevo sol per US dollar - 3.4785 (2003), 3.5165 (2002), 3.5068 (2001), 3.49 (2000), 3.3833 (1999)
 
Fiscal year calendar year

 

 

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This information was reproduced in part from the CIA World Fact book.

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