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flag Peru Peru: Economic and Political Outline

Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline

Economic Indicators

Peru’s economy is one of the most dynamic in Latin America, but it has experienced a significant slowdown in 2009 (0.9% of growth against 9.8% in 2008), due to the effect of the drop in global trade, the price fall in raw materials and the reduction of domestic demand.  Thanks to its solid base, the country gave proof of a strong endurance in face of the crisis, the government had set up counter-cyclical measures and controlled the adapted monetary means.  The revival was quick and vigorous in 2010, with an estimated growth or 8.3%, supported by the revival of global trade, the dynamism of domestic demand and the performance of investments.

Once the revival was well-started, the government began to withdraw gradually the exceptional re-launch measures and it is trying to contain the risks of inflation.  The president Garcia has established five priorities:  to stimulate growth with the support of investments, to maintain an austerity policy, to redistribute wealth, decentralization, education and health.  In the context of the next elections, he reaffirms his objective of reducing poverty and extreme poverty and wishes to speed up the integration of Peru into the global economy through the multiplication of trade agreements. 

In spite of the net progress achieved, 50% of the population lives beyond the poverty line, under-employment affects 60% of the population, unemployment is 8% and the informal economy represents 70% of the employment.  There is a strong concentration of wealth and significant inequalities.

 
Main Indicators 2009201020112012 (e)2013 (e)
GDP (billions USD) 126.92153.80e168.46179.19193.15
GDP (Constant Prices, Annual % Change) 0.98.86.25.66.0
GDP per Capita (USD) 4,361e5,2055,614e5,8806,241
General Government Balance (in % of GDP) -0.9-1.2e-0.20.31.1
General Government Gross Debt (in % of GDP) 27.124.521.5e19.216.4
Inflation Rate (%) 2.91.5e3.1e2.42.2
Unemployment Rate (% of the Labor Force) 8.47.97.57.57.5
Current Account (billions USD) 0.21-2.32-4.56-5.03-5.75
Current Account (in % of GDP) 0.2-1.5e-2.7-3.0-

Source: IMF - World Economic Outlook Database ; World Bank , Last Available Data

Note: (e) Estimated Data

Main Sectors of Industry

Agriculture contributes more than 7% to the country’s GDP and employs nearly 10% of the population. The main agricultural products are cotton, sugarcane, coffee, wheat, rice, corn and barley.

The industry sector employs almost 42% of the population and generates more than one third of the GDP. Peru has a large mining industry, which was privatized in the1990s and attracts significant investments. Peru is the world’s first producer of silver, the fifth largest producer of gold, the third producer of copper, and an important supplier of zinc and lead. The country also has large reserves of natural gas and oil, even though, Peru is a net energy importer.

The main manufacturing activities are textiles, consumer goods, food processing and fish products. Peru is the world's first exporter of fish meal and asparagus. 

The tertiary sector contributes about 56% to the GDP and employs a little less than half of the population. The tourism sector is very well developed.

 
Breakdown of Economic Activity By Sector Agriculture Industry Services
Employment By Sector (in % of Total Employment) 8.1 20.8 71.0
Value Added (in % of GDP) 6.8 31.7 61.5
Value Added (Annual % Change) 2.7 2.0 13.6

Source: World Bank - Last Available Data.

 
 
Monetary Indicators 20062007200820092010
Peruvian Nuevo Sol (PEN) - Average Annual Exchange Rate For 1 USD 3.273.132.923.012.83

Source: World Bank - Last Available Data.

 
 
Learn more about Market Analysis about Peru on Globaltrade.net, the Directory for International Trade Services.
 

Indicator of Economic Freedom

Score:
68.6/100
Position:
Moderately free
World Rank:
40/179
Regional Rank:
4/26

Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation

 

Country Risk

See the Country Risk Analysis Provided By Ducroire.

 

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Foreign Trade in Figures

Peru is a member of the WTO and it is very open to international trade which represents more than 45% of the GDP. Its economy benefits substantially from the Trade Promotion Agreement (TPA) with the United States.  Peru’s three main export partners are the United States, China and Switzerland. The main export commodities are ores, precious stones, copper and oil. Its three main suppliers are the United States, China and Brazil. Peru mainly imports fuels, machinery, electronic equipment, plastic products and vehicles.  Structurally positive, Peru's trade balance should continue to strengthen with the rise in exports.

 
Foreign Trade Indicators 20062007200820092010
Imports of Goods (million USD) 15,31220,46429,98221,86530,126
Exports of Goods (million USD) 23,83027,88231,52926,88535,565
Imports of Services (million USD) 3,2664,2135,4734,6195,587
Exports of Services (million USD) 2,5323,0213,5153,5173,874
Imports of Goods and Services (Annual % Change) 13.121.319.9-11.919.5
Exports of Goods and Services (Annual % Change) 0.86.28.2-2.55.0
Imports of Goods and Services (in % of GDP) 19.922.427.020.320.7
Exports of Goods and Services (in % of GDP) 28.528.927.624.223.9
Trade Balance (million USD) 8,9868,5032,5695,9516,750
Trade Balance (Including Service) (million USD) 8,2497,3125144,8074,713
Foreign Trade (in % of GDP) 48.451.354.544.444.6

Source: WTO - World Trade Organization ; World Bank , Last Available Data

 

Main Partner Countries

Main Customers
(% of Exports)
2010
United States 16.4%
China 15.5%
Switzerland 11.0%
Canada 9.5%
Japan 5.1%
See More Countries 42.6%
Main Suppliers
(% of Imports)
2010
United States 19.5%
China 17.1%
Brazil 7.3%
Ecuador 4.8%
Japan 4.6%
See More Countries 46.8%

Source: Comtrade, Last Available Data

 

Main Products

Main Exports
(% of Exports)
2010
Gold, incl. gold plated with platinum, unwrought...Gold, incl. gold plated with platinum, unwrought or not further worked than semi-manufactured or in powder form 22.0%
Copper ores and concentratesCopper ores and concentrates 17.5%
Copper, refined, and copper alloys, unwrought ...Copper, refined, and copper alloys, unwrought (excl. copper alloys of heading 7405) 7.2%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 6.6%
Flours, meals and pellets, of meat or meat offal,...Flours, meals and pellets, of meat or meat offal, of fish or of crustaceans, molluscs or other aquatic invertebrates, unfit for human consumption; greaves 4.6%
See More Products 42.1%
Main Imports
(% of Imports)
2010
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals, crude 9.0%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 4.8%
Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702) 3.6%
Motor vehicles for the transport of goods, incl....Motor vehicles for the transport of goods, incl. chassis with engine and cab 3.3%
Automatic data processing machines and units...Automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, n.e.s. 1.9%
See More Products 77.4%

Source: Comtrade, Last Available Data

 
See More Products
More imports (Intracen Data)
More exports (Intracen Data)
 

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Sources of General Economic Information

Ministries
Ministry of Economy and Finances
Statistical Office
National Institute of Statistics (in Spanish)
Central Bank
Central Reserve Bank of Peru
Stock Exchange
Lima Stock Exchange (in Spanish)
Search Engines
Search Beat
Peruvian general search engine
Economic Portals
Business News Americas
Observatório de la Economía de Perú
Economía latino-americana
Information about commerce, trade, import-export
Peru Info

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Political Outline

Executive Power
President is both the chief of the state and head of the government. President is the commander-in-chief of the armed forces and holds executive powers which include implementation of the law and running the day-to-day affairs of the country. President is quite powerful. President is elected by popular vote for a five-year term. The President appoints the Council of Ministers (cabinet) and Prime Minister to serve for five-year terms. All Presidential decree laws or draft bills sent to parliament must be approved by the Council of Ministers.
Legislative Power
The legislature is unicameral Peru.The parliament called Congress consists of 120 seats, with its members elected by popular vote to serve five-year terms. President has the power to veto acts of the legislature, and in turn a supermajority (generally two-thirds majority) of legislators may act to override the veto. The president has the power to block legislation with which the executive branch does not agree. The people of Peru enjoy considerable political rights.
Main Political Parties
Peru has a multi-party system. As a result it is difficult for a single political party to obtain an absolute majority in the Congress. Thus political parties often work with each other to form coalition governments. The main political parties in the country are:
- PAP (Peruvian Aprista Party, also referred to by its original name APRA- American Popular Revolutionary Alliance) – a left wing social democratic party,
- UPP (Union for Peru) – a liberal political party,
- UN (National Unity) – a right-wing Christian democratic political party,
- Change-90 - a political a party having strong base in industrial workers.
Current Political Leaders
President: Ollanta HUMALA (since July 2011) – Gana Peru
Prime Minister: Oscar VALDES Dancuart (since 11 December 2011) - Independant
Next Election Dates
Presidential: April 2016
Congress: April 2016
 

Indicator of Freedom of the Press

World Rank:
109/178
Evolution:
24 places down compared to 2009

Source: Worldwide Press Freedom Index 2010, Reporters Without Borders

 

Indicator of Political Freedom

Ranking:
Free
Political Freedom:
2/7
Civil Liberties:
3/7

Map of freedom 2010
Source: Freedom House

 

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Last Updates: January 2012