Peru Economy Profile 2008

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 grew by more than 4% per year during the period 2002-06, with a stable exchange rate and low inflation. Growth jumped to 7.5% in 2007, driven by higher world prices for minerals and metals. Risk premiums on Peruvian bonds on secondary markets reached historically low levels in late 2004, reflecting investor optimism regarding the government's prudent fiscal policies and openness to trade and investment. Despite the strong macroeconomic performance, underemployment and poverty have stayed persistently high. Growth prospects depend on exports of minerals, textiles, and agricultural products, and by expectations for the Camisea natural gas megaproject and for other promising energy projects. Upon taking office, President GARCIA announced Sierra Exportadora, a program aimed at promoting economic growth in Peru's southern and central highlands.

GDP (purchasing power parity)

$219.6 billion (2007 est.)

GDP (official exchange rate)

$109.1 billion (2007 est.)

GDP - real growth rate

9% (2007 est.)

GDP - per capita (PPP)

$7,600 (2007 est.)

GDP - composition by sector

agriculture: 8.4%
industry: 25.6%
services: 66% (2007 est.)

Population below poverty line

44.5% (2006)

Labor force

9.839 million (2007 est.)

Labor force - by occupation

agriculture: 9%
industry: 18%
services: 73% (2001)

Unemployment rate

6.9% in metropolitan Lima; widespread underemployment (2007 est.)

Household income or consumption by percentage share

lowest 10%: 1.3%
highest 10%: 40.9% (2003)

Distribution of family income - Gini index

52 (2003)

Investment (gross fixed)

23% of GDP (2007 est.)

Budget

revenues: $32.54 billion
expenditures: $29.15 billion (2007 est.)

Public debt

29.2% of GDP (2007 est.)

Inflation rate (consumer prices)

1.8% (2007 est.)

Central bank discount rate

5.75% (31 December 2007)

Commercial bank prime lending rate

22.86% (31 December 2007)

Stock of money

$14.66 billion (31 December 2007)

Stock of quasi money

$19.95 billion (31 December 2007)

Stock of domestic credit

$17.88 billion (31 December 2007)

Industries

mining and refining of minerals; steel, metal fabrication; petroleum extraction and refining, natural gas; fishing and fish processing, textiles, clothing, food processing

Industrial production growth rate

9.8% (2007 est.)

Electricity - production

24.92 billion kWh (2006 est.)

Electricity - consumption

22.37 billion kWh (2006 est.)

Electricity - exports

0 kWh (2007 est.)

Electricity - imports

0 kWh (2007 est.)

Oil - production

125,000 bbl/day (2008 est.)

Oil - consumption

167,900 bbl/day (2006 est.)

Oil - imports

115,600 bbl/day (2005)

Oil - exports

69,090 bbl/day (2005 est.)

Oil - proved reserves

382.9 million bbl (1 January 2008 est.)

Natural gas - production

1.78 billion cu m (2006 est.)

Natural gas - consumption

1.78 billion cu m (2006 est.)

Natural gas - exports

0 cu m (2007 est.)

Natural gas - imports

0 cu m (2007 est.)

Natural gas - proved reserves

337.8 billion cu m (1 January 2008 est.)

Current Account Balance

$1.516 billion (2007 est.)

Agriculture - products

asparagus, coffee, cotton, sugarcane, rice, potatoes, corn, plantains, grapes, oranges, coca; poultry, beef, dairy products; fish, guinea pigs

Exports

$27.96 billion f.o.b. (2007 est.)

Exports - commodities

copper, gold, zinc, crude petroleum and petroleum products, coffee, potatoes, asparagus, textiles, guinea pigs

Exports - partners

US 19.5%, China 12.7%, Canada 7.6%, Japan 7.5%, Chile 5.9%, Switzerland 4.2%, Spain 4.1% (2007)

Imports

$19.6 billion f.o.b. (2007 est.)

Imports - commodities

petroleum and petroleum products, plastics, machinery, vehicles, iron and steel, wheat, paper

Imports - partners

US 20.5%, China 10.8%, Brazil 9%, Ecuador 6.1%, Argentina 5.6%, Chile 5%, Colombia 4.8% (2007)

Reserves of foreign exchange and gold

$27.78 billion (31 December 2007 est.)

Debt - external

$32.83 billion (31 December 2007 est.)

Stock of direct foreign investment - at home

$24.72 billion (2007 est.)

Stock of direct foreign investment - abroad

$1.476 billion (2007 est.)

Market value of publicly traded shares

$59.66 billion (2006)

Economic aid - recipient

$397.8 million (2005)

Currency (code)

nuevo sol (PEN)

Exchange rates

nuevo sol (PEN) per US dollar - 3.1731 (2007), 3.2742 (2006), 3.2958 (2005), 3.4132 (2004), 3.4785 (2003)

Fiscal year

calendar year