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Peru Economy Profile 2017

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Economy - overviewPeru's economy reflects its varied topography - an arid lowland coastal region, the central high sierra of the Andes, and the dense forest of the Amazon. A wide range of important mineral resources are found in the mountainous and coastal areas, and Peru's coastal waters provide excellent fishing grounds. Peru is the world's second largest producer of silver and copper.

The Peruvian economy grew by an average of 5.6% per year from 2009-13 with a stable exchange rate and low inflation, which in 2013 was just below the upper limit of the Central Bank target range of 1% to 3%. This growth was due partly to high international prices for Peru's metals and minerals exports, which account for 55% of the country's total exports. Growth slipped from 2014 to 2016, due to weaker world prices for these resources. Despite Peru's strong macroeconomic performance, dependence on minerals and metals exports and imported foodstuffs makes the economy vulnerable to fluctuations in world prices.

Peru's rapid expansion coupled with cash transfers and other programs have helped to reduce the national poverty rate by over 35 percentage points since 2004, but inequality persists and continued to pose a challenge for the Ollanta HUMALA administration, which championed a policy of social inclusion and a more equitable distribution of income. Poor infrastructure hinders the spread of growth to Peru's non-coastal areas. The HUMALA administration passed several economic stimulus packages in 2014 to bolster growth, including reforms to environmental regulations in order to spur investment in Peru’s lucrative mining sector, a move that was opposed by some environmental groups. However, in 2015, mining investment fell as global commodity prices remained low and social conflicts plagued the sector.

Peru's free trade policy continued under the HUMALA administration; since 2006, Peru has signed trade deals with the US, Canada, Singapore, China, Korea, Mexico, Japan, the EU, the European Free Trade Association, Chile, Thailand, Costa Rica, Panama, Venezuela, Honduras, concluded negotiations with Guatemala and the Trans-Pacific Partnership, and begun trade talks with El Salvador, India, and Turkey. Peru also has signed a trade pact with Chile, Colombia, and Mexico, called the Pacific Alliance, that seeks integration of services, capital, investment and movement of people. Since the US-Peru Trade Promotion Agreement entered into force in February 2009, total trade between Peru and the US has doubled. President Pedro Pablo KUCZYNSKI succeeded HUMALA in July 2016 and is focusing on economic reforms and free market policies aimed at boosting investment in Peru. Mining output increased significantly in 2016, which helped Peru attain one of the highest GDP growth rates in Latin America, and Peru should maintain strong growth in 2017. However, 2016 economic performance fell short of initial projections depressed by delays in infrastructure mega-projects and the start of a corruption scandal associated with a Brazilian firm, which have lowered 2017 growth estimates. Massive flooding in early 2017 may also be a drag on growth, offset somewhat by additional public spending aimed at recovery efforts.
GDP (purchasing power parity)$410.4 billion (2016 est.)
$395 billion (2015 est.)
$382.5 billion (2014 est.)
note: data are in 2016 dollars
GDP (official exchange rate)$180.3 billion (2016 est.)
GDP - real growth rate3.9% (2016 est.)
3.3% (2015 est.)
2.4% (2014 est.)
GDP - per capita (PPP)$13,000 (2016 est.)
$12,700 (2015 est.)
$12,400 (2014 est.)
note: data are in 2016 dollars
Gross national saving20.9% of GDP (2016 est.)
21.6% of GDP (2015 est.)
22.3% of GDP (2014 est.)
GDP - composition, by end usehousehold consumption: 62.8%
government consumption: 13.6%
investment in fixed capital: 23.5%
investment in inventories: 1.4%
exports of goods and services: 22.3%
imports of goods and services: -23.6% (2016 est.)
GDP - composition by sectoragriculture: 7.3%
industry: 34.2%
services: 58.5% (2016 est.)
Population below poverty line22.7% (2014 est.)
Labor force17.12 million
note: individuals older than 14 years of age (2016 est.)
Labor force - by occupationagriculture: 25.8%
industry: 17.4%
services: 56.8% (2011)
Unemployment rate6% (2016 est.)
6% (2015 est.)
note: data are for metropolitan Lima; widespread underemployment
Unemployment, youth ages 15-24total: 8.8%
male: 8.3%
female: 9.3% (2013 est.)
Household income or consumption by percentage sharelowest 10%: 1.4%
highest 10%: 36.1% (2010 est.)
Distribution of family income - Gini index45.3 (2012)
51 (2005)
Budgetrevenues: $60.84 billion
expenditures: $66.46 billion (2016 est.)
Taxes and other revenues33.7% of GDP (2016 est.)
Budget surplus (+) or deficit (-)-3.1% of GDP (2016 est.)
Public debt26.3% of GDP (2016 est.)
23.3% of GDP (2015 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 subnational entities
Inflation rate (consumer prices)3.6% (2016 est.)
3.5% (2015 est.)
note: data are for metropolitan Lima, annual average
Central bank discount rate4.25% (31 December 2016 est.)
5.05% (31 December 2012)
Commercial bank prime lending rate16.1% (31 December 2016 est.)
16.1% (31 December 2015 est.)
note: domestic currency lending rate, 90 day maturity
Stock of narrow money$32.72 billion (31 December 2016 est.)
$29.86 billion (31 December 2015 est.)
Stock of broad money$91.26 billion (31 December 2014 est.)
$84.1 billion (31 December 2013 est.)
Stock of domestic credit$57.6 billion (31 December 2016 est.)
$49.92 billion (31 December 2015 est.)
Market value of publicly traded shares$56.56 billion (31 December 2015 est.)
$78.84 billion (31 December 2014 est.)
$80.98 billion (31 December 2013 est.)
Agriculture - productsartichokes, asparagus, avocados, blueberries, coffee, cocoa, cotton, sugarcane, rice, potatoes, corn, plantains, grapes, oranges, pineapples, guavas, bananas, apples, lemons, pears, coca, tomatoes, mangoes, barley, medicinal plants, quinoa, palm oil, marigold, onion, wheat, dry beans; poultry, beef, pork, dairy products; guinea pigs; fish
Industriesmining 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 rate3.2% (2016 est.)
Current Account Balance-$5.463 billion (2016 est.)
-$9.402 billion (2015 est.)
Exports$36.84 billion (2016 est.)
$34.24 billion (2015 est.)
Exports - commoditiescopper, gold, lead, zinc, tin, iron ore, molybdenum, silver; crude petroleum and petroleum products, natural gas; coffee, asparagus and other vegetables, fruit, apparel and textiles, fishmeal, fish, chemicals, fabricated metal products and machinery, alloys
Exports - partnersChina 22.1%, US 15.2%, Switzerland 8.1%, Canada 7% (2015)
Imports$35.11 billion (2016 est.)
$37.39 billion (2015 est.)
Imports - commoditiespetroleum and petroleum products, chemicals, plastics, machinery, vehicles, TV sets, power shovels, front-end loaders, telephones and telecommunication equipment, iron and steel, wheat, corn, soybean products, paper, cotton, vaccines and medicines
Imports - partnersChina 22.7%, US 20.7%, Brazil 5.1%, Mexico 4.5% (2015)
Reserves of foreign exchange and gold$60.41 billion (31 December 2016 est.)
$61.59 billion (31 December 2015 est.)
Debt - external$69.78 billion (31 December 2016 est.)
$67.87 billion (31 December 2015 est.)
Stock of direct foreign investment - at home$94.26 billion (31 December 2016 est.)
$86.11 billion (31 December 2015 est.)
Stock of direct foreign investment - abroad$2.914 billion (31 December 2016 est.)
$2.815 billion (31 December 2015 est.)
Exchange ratesnuevo sol (PEN) per US dollar -
3.363 (2016 est.)
3.185 (2015 est.)
3.185 (2014 est.)
2.8383 (2013 est.)
2.64 (2012 est.)
Fiscal yearcalendar year

Source: CIA World Factbook
This page was last updated on July 9, 2017

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