Peru vs. Brazil


Economy - overview

Peru'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. 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 2017, 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 2016-17, which helped Peru attain one of the highest GDP growth rates in Latin America, and Peru should maintain strong growth in 2018. However, economic performance was depressed by delays in infrastructure mega-projects and the start of a corruption scandal associated with a Brazilian firm. Massive flooding in early 2017 also was a drag on growth, offset somewhat by additional public spending aimed at recovery efforts.

Brazil is the eighth-largest economy in the world, but is recovering from a recession in 2015 and 2016 that ranks as the worst in the country’s history. In 2017, Brazil`s GDP grew 1%, inflation fell to historic lows of 2.9%, and the Central Bank lowered benchmark interest rates from 13.75% in 2016 to 7%.

The economy has been negatively affected by multiple corruption scandals involving private companies and government officials, including the impeachment and conviction of Former President Dilma ROUSSEFF in August 2016. Sanctions against the firms involved — some of the largest in Brazil — have limited their business opportunities, producing a ripple effect on associated businesses and contractors but creating opportunities for foreign companies to step into what had been a closed market.

The succeeding TEMER administration has implemented a series of fiscal and structural reforms to restore credibility to government finances. Congress approved legislation in December 2016 to cap public spending. Government spending growth had pushed public debt to 73.7% of GDP at the end of 2017, up from over 50% in 2012. The government also boosted infrastructure projects, such as oil and natural gas auctions, in part to raise revenues. Other economic reforms, proposed in 2016, aim to reduce barriers to foreign investment, and to improve labor conditions. Policies to strengthen Brazil’s workforce and industrial sector, such as local content requirements, have boosted employment, but at the expense of investment.

Brazil is a member of the Common Market of the South (Mercosur), a trade bloc that includes Argentina, Paraguay and Uruguay - Venezuela’s membership in the organization was suspended In August 2017. After the Asian and Russian financial crises, Mercosur adopted a protectionist stance to guard against exposure to volatile foreign markets and it currently is negotiating Free Trade Agreements with the European Union and Canada.

GDP (purchasing power parity)$417.69 billion (2019 est.)

$408.898 billion (2018 est.)

$393.259 billion (2017 est.)

note: data are in 2010 dollars
$3,092,216,000,000 (2019 est.)

$3,057,465,000,000 (2018 est.)

$3,017,715,000,000 (2017 est.)

note: data are in 2010 dollars
GDP - real growth rate2.18% (2019 est.)

3.97% (2018 est.)

2.48% (2017 est.)
1.13% (2019 est.)

1.2% (2018 est.)

1.62% (2017 est.)
GDP - per capita (PPP)$12,848 (2019 est.)

$12,782 (2018 est.)

$12,507 (2017 est.)

note: data are in 2010 dollars
$14,652 (2019 est.)

$14,596 (2018 est.)

$14,520 (2017 est.)

note: data are in 2010 dollars
GDP - composition by sectoragriculture: 7.6% (2017 est.)

industry: 32.7% (2017 est.)

services: 59.9% (2017 est.)
agriculture: 6.6% (2017 est.)

industry: 20.7% (2017 est.)

services: 72.7% (2017 est.)
Population below poverty line20.2% (2019 est.)4.2% (2016 est.)

note: approximately 4% of the population are below the "extreme" poverty line
Household income or consumption by percentage sharelowest 10%: 1.4%

highest 10%: 36.1% (2010 est.)
lowest 10%: 0.8%

highest 10%: 43.4% (2016 est.)
Inflation rate (consumer prices)2.1% (2019 est.)

1.3% (2018 est.)

2.8% (2017 est.)

note: data are for metropolitan Lima, annual average
3.7% (2019 est.)

3.6% (2018 est.)

3.4% (2017 est.)
Labor force3.421 million (2020 est.)

note: individuals older than 14 years of age
86.621 million (2020 est.)
Labor force - by occupationagriculture: 25.8%

industry: 17.4%

services: 56.8% (2011)
agriculture: 9.4%

industry: 32.1%

services: 58.5% (2017 est.)
Unemployment rate6.58% (2019 est.)

6.73% (2018 est.)

note: data are for metropolitan Lima; widespread underemployment
11.93% (2019 est.)

12.26% (2018 est.)
Distribution of family income - Gini index42.8 (2018 est.)

51 (2005)
53.9 (2018 est.)

54 (2004)
Budgetrevenues: 58.06 billion (2017 est.)

expenditures: 64.81 billion (2017 est.)
revenues: 733.7 billion (2017 est.)

expenditures: 756.3 billion (2017 est.)
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, furnituretextiles, shoes, chemicals, cement, lumber, iron ore, tin, steel, aircraft, motor vehicles and parts, other machinery and equipment
Industrial production growth rate2.7% (2017 est.)0% (2017 est.)
Agriculture - productssugar cane, potatoes, rice, plantains, milk, poultry, maize, cassava, oil palm fruit, grapessugar cane, soybeans, maize, milk, cassava, oranges, poultry, rice, beef, cotton
Exports$55.583 billion (2019 est.)

$55.129 billion (2018 est.)

$53.823 billion (2017 est.)
$291.452 billion (2019 est.)

$298.565 billion (2018 est.)

$286.935 billion (2017 est.)
Exports - commoditiescopper, gold, refined petroleum, zinc, fishmeal, tropical fruits, lead, iron, molybdenum (2019)soybeans, crude petroleum, iron, corn, wood pulp products (2019)
Exports - partnersChina 29%, United States 12%, Canada 5%, South Korea 5%, Switzerland 5% (2019)China 28%, United States 13% (2019)
Imports$48.211 billion (2019 est.)

$47.616 billion (2018 est.)

$46.15 billion (2017 est.)
$271.257 billion (2019 est.)

$268.237 billion (2018 est.)

$248.961 billion (2017 est.)
Imports - commoditiesrefined petroleum, crude petroleum, cars, broadcasting equipment, delivery trucks (2019)refined petroleum, vehicle parts, crude petroleum, integrated circuits, pesticides (2019)
Imports - partnersChina 24%, United States 22%, Brazil 6% (2019)China 21%, United States 18%, Germany 6%, Argentina 6% (2019)
Debt - external$81.333 billion (2019 est.)

$75.467 billion (2018 est.)
$681.336 billion (2019 est.)

$660.693 billion (2018 est.)
Exchange ratesnuevo sol (PEN) per US dollar -

3.599 (2020 est.)

3.3799 (2019 est.)

3.366 (2018 est.)

3.185 (2014 est.)

2.8383 (2013 est.)
reals (BRL) per US dollar -

5.12745 (2020 est.)

4.14915 (2019 est.)

3.862 (2018 est.)

3.3315 (2014 est.)

2.3535 (2013 est.)
Fiscal yearcalendar yearcalendar year
Public debt25.4% of GDP (2017 est.)

24.5% of GDP (2016 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
84% of GDP (2017 est.)

78.4% of GDP (2016 est.)
Reserves of foreign exchange and gold$63.83 billion (31 December 2017 est.)

$61.81 billion (31 December 2016 est.)
$374 billion (31 December 2017 est.)

$367.5 billion (31 December 2016 est.)
Current Account Balance-$3.531 billion (2019 est.)

-$3.821 billion (2018 est.)
-$50.927 billion (2019 est.)

-$41.54 billion (2018 est.)
GDP (official exchange rate)$230.707 billion (2019 est.)$1,877,942,000,000 (2019 est.)
Taxes and other revenues27.1% (of GDP) (2017 est.)35.7% (of GDP) (2017 est.)
Budget surplus (+) or deficit (-)-3.1% (of GDP) (2017 est.)-1.1% (of GDP) (2017 est.)
Unemployment, youth ages 15-24total: 7.3%

male: 6.9%

female: 7.9% (2019 est.)
total: 27.8%

male: 24.1%

female: 32.6% (2019 est.)
GDP - composition, by end usehousehold consumption: 64.9% (2017 est.)

government consumption: 11.7% (2017 est.)

investment in fixed capital: 21.7% (2017 est.)

investment in inventories: -0.2% (2017 est.)

exports of goods and services: 24% (2017 est.)

imports of goods and services: -22% (2017 est.)
household consumption: 63.4% (2017 est.)

government consumption: 20% (2017 est.)

investment in fixed capital: 15.6% (2017 est.)

investment in inventories: -0.1% (2017 est.)

exports of goods and services: 12.6% (2017 est.)

imports of goods and services: -11.6% (2017 est.)
Gross national saving19.8% of GDP (2018 est.)

19.7% of GDP (2017 est.)

19% of GDP (2015 est.)
12.2% of GDP (2019 est.)

12.4% of GDP (2018 est.)

13.6% of GDP (2017 est.)

Source: CIA Factbook