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Peru Economy Profile 2019

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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.

GDP (purchasing power parity)
$430.3 billion (2017 est.)
$420 billion (2016 est.)
$403.7 billion (2015 est.)

note: data are in 2017 dollars

GDP (official exchange rate)
$214.2 billion (2017 est.)
GDP - real growth rate
2.5% (2017 est.)
4% (2016 est.)
3.3% (2015 est.)
GDP - per capita (PPP)
$13,500 (2017 est.)
$13,300 (2016 est.)
$13,000 (2015 est.)

note: data are in 2017 dollars

Gross national saving
19.8% of GDP (2017 est.)
19.5% of GDP (2016 est.)
19% of GDP (2015 est.)
GDP - composition, by end use
household 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.)
GDP - composition by sector
agriculture: 7.6% (2017 est.)
industry: 32.7% (2017 est.)
services: 59.9% (2017 est.)
Population below poverty line
22.7% (2014 est.)
Labor force
17.03 million (2017 est.)

note: individuals older than 14 years of age

Labor force - by occupation
agriculture: 25.8%
industry: 17.4%
services: 56.8% (2011)
Unemployment rate
6.9% (2017 est.)
6.7% (2016 est.)

note: data are for metropolitan Lima; widespread underemployment

Unemployment, youth ages 15-24
total: 14.7%
male: 14.3%
female: 15% (2018 est.)
Household income or consumption by percentage share
lowest 10%: 1.4%
highest 10%: 36.1% (2010 est.)
Distribution of family income - Gini index
45.3 (2012)
51 (2005)
Budget
revenues: 58.06 billion (2017 est.)
expenditures: 64.81 billion (2017 est.)
Taxes and other revenues
27.1% (of GDP) (2017 est.)
Budget surplus (+) or deficit (-)
-3.1% (of GDP) (2017 est.)
Public debt
25.4% 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

Inflation rate (consumer prices)
2.8% (2017 est.)
3.6% (2016 est.)

note: data are for metropolitan Lima, annual average

Central bank discount rate
4.25% (31 December 2016 est.)
5.05% (31 December 2012)
Commercial bank prime lending rate
16.6% (31 December 2017 est.)
16.47% (31 December 2016 est.)

note: domestic currency lending rate, 90 day maturity

Stock of narrow money
$33.41 billion (31 December 2017 est.)
$31.08 billion (31 December 2016 est.)
Stock of broad money
$33.41 billion (31 December 2017 est.)
$31.08 billion (31 December 2016 est.)
Stock of domestic credit
$56.7 billion (31 December 2017 est.)
$52.8 billion (31 December 2016 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 - products
artichokes, 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, marigolds, onions, wheat, dry beans; poultry, beef, pork, dairy products; guinea pigs; fish
Industries
mining 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 rate
2.7% (2017 est.)
Current Account Balance
-$2.414 billion (2017 est.)
-$5.239 billion (2016 est.)
Exports
$44.92 billion (2017 est.)
$37.02 billion (2016 est.)
Exports - commodities
copper, 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 - partners
China 26.5%, US 15.2%, Switzerland 5.2%, South Korea 4.4%, Spain 4.1%, India 4.1% (2017)
Imports
$38.65 billion (2017 est.)
$35.13 billion (2016 est.)
Imports - commodities
petroleum 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 - partners
China 22.3%, US 20.1%, Brazil 6%, Mexico 4.4% (2017)
Reserves of foreign exchange and gold
$63.83 billion (31 December 2017 est.)
$61.81 billion (31 December 2016 est.)
Debt - external
$66.25 billion (31 December 2017 est.)
$66.76 billion (31 December 2016 est.)
Stock of direct foreign investment - at home
$98.24 billion (31 December 2017 est.)
$91.48 billion (31 December 2016 est.)
Stock of direct foreign investment - abroad
$5.447 billion (31 December 2017 est.)
$4.255 billion (31 December 2016 est.)
Exchange rates
nuevo sol (PEN) per US dollar -
3.265 (2017 est.)
3.3751 (2016 est.)
3.3751 (2015 est.)
3.185 (2014 est.)
2.8383 (2013 est.)
Fiscal year
calendar year

Source: CIA World Factbook
This page was last updated on December 7, 2019

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