Economy - overviewPeru'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 almost 6% per year during the period 2002-06, with a stable exchange rate and low inflation. Growth jumped to nearly 9% per year in 2007 and 10% in 2008, driven by private investment and government spending, but then fell to less than 1% in 2009 in the face of the world recession, a sharp fall of private investment, and a substantial increase in counter-cyclical government spending. Growth resumed in 2010 at above 8%, due partly to a leap in private investment and continued high government spending. Peru's rapid expansion coupled with the government's conditional cash transfers and other programs have helped to reduce the national poverty rate by over 19 percentage points since 2002, though underemployment remains high. Inflation in 2010 was within the Central Bank's 1%-3% target range. 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. A growing number of Peruvians are sharing in the benefits of growth but despite President GARCIA's pursuit of sound trade and macroeconomic policies, inequality persists. Nevertheless, he remains committed to Peru's free-trade path. Since 2006, Peru has signed trade deals with the United States, Canada, Singapore, China, Korea, and Japan, concluded negotiations with the European Free Trade Association (EFTA) and Chile, and begun trade talks with Central American countries and others. The US-Peru Trade Promotion Agreement (PTPA) entered into force 1 February 2009, opening the way to greater trade and investment between the two economies. Rising world prices of foodstuffs and fuel, coupled with strong domestic demand, are immediate concerns for 2011. Peru has continued to attract foreign investment. However, political disputes may impede development of some projects related to natural resource extraction. GDP (purchasing power parity)$275.7 billion (2010 est.) GDP (official exchange rate)$152.8 billion (2010 est.) GDP - real growth rate8.8% (2010 est.) GDP - per capita (PPP)$9,200 (2010 est.) GDP - composition by sectoragriculture: 10% Population below poverty line34.8% (2009) Labor force10.58 million (2010 est.) Labor force - by occupationagriculture: 0.7% Unemployment rate6.6% (2010 est.) Unemployment, youth ages 15-24total: 14% Household income or consumption by percentage sharelowest 10%: 1.4% Distribution of family income - Gini index48 (2009) Investment (gross fixed)25.1% of GDP (2010 est.) Budgetrevenues: $44.53 billion Taxes and other revenues29.1% of GDP (2010 est.) Budget surplus (+) or deficit (-)-0.6% of GDP (2010 est.) Public debt23.9% of GDP (2010 est.) Inflation rate (consumer prices)1.5% (2010 est.) Central bank discount rate3.8% (31 December 2010) Commercial bank prime lending rate18.975% (31 December 2010 est.) Stock of narrow money$21.69 billion (31 December 2010 est.) Stock of money$15.48 billion (31 December 2008) Stock of quasi money$25.27 billion (31 December 2008) Stock of broad money$56.76 billion (31 December 2010 est.) Stock of domestic credit$44.2 billion (31 December 2010 est.) Market value of publicly traded shares$160.9 billion (31 December 2010) Agriculture - productsasparagus, 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 Industriesmining and refining of minerals; steel, metal fabrication; petroleum extraction and refining, natural gas and natural gas liquefaction; fishing and fish processing, cement, textiles, clothing, food processing Industrial production growth rate13.6% (2010 est.) Electricity - production35.79 billion kWh (2010 est.) Electricity - production by sourcefossil fuel: 14.5% Electricity - consumption31.74 billion kWh (2009 est.) Electricity - exports111.9 million kWh (2010 est.) Electricity - imports0 kWh (2010 est.) Oil - production158,300 bbl/day (2010 est.) Oil - consumption189,000 bbl/day (2010 est.) Oil - exports73,280 bbl/day (2009 est.) Oil - imports88,080 bbl/day (2010 est.) Oil - proved reserves532.7 million bbl (1 January 2011 est.) Natural gas - production7.24 billion cu m (2010) Natural gas - consumption3.65 billion cu m (2010) Natural gas - exports3.59 billion cu m Natural gas - imports0 cu m (2010) Natural gas - proved reserves345.5 billion cu m (1 January 2011 est.) Current Account Balance-$2.315 billion (2010 est.) Exports$35.56 billion (2010 est.) Exports - commoditiescopper, gold, zinc, tin, iron ore, molybdenum; crude petroleum and petroleum products, natural gas; coffee, potatoes, asparagus and other vegetables, fruit, apparel and textiles, fishmeal Exports - partnersChina 18.4%, US 16.1%, Canada 11.7%, Japan 6.6%, Germany 4.5%, Spain 4% (2010) Imports$28.82 billion (2010 est.) Imports - commoditiespetroleum and petroleum products, chemicals, plastics, machinery, vehicles, color TV sets, power shovels, front-end loaders, telephones and telecommunication equipment, iron and steel, wheat, corn, soybean products, paper, cotton, vaccines and medicines Imports - partnersUS 24.7%, China 13%, Brazil 7.4%, Ecuador 4.7%, Chile 4.3%, Colombia 4.2% (2010) Reserves of foreign exchange and gold$44.21 billion (31 December 2010 est.) Debt - external$42.27 billion (30 June 2011 est.) Stock of direct foreign investment - at home$44.24 billion (31 December 2010 est.) Stock of direct foreign investment - abroad$2.095 billion (31 December 2010 est.) Exchange ratesnuevo sol (PEN) per US dollar - |
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Source: CIA World Factbook | |
