Peru Economy Profile 2009

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. 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 9% per year in 2007 and 2008, driven by higher world prices for minerals and metals and the government's aggressive trade liberalization strategies. Peru's rapid expansion has helped to reduce the national poverty rate by about 15% since 2002, though underemployment and inflation remain high. Despite Peru's strong macroeconomic performance, overdependence on minerals and metals subjects the economy to fluctuations in world prices, and poor infrastructure precludes the spread of growth to Peru's non-coastal areas. Not all Peruvians therefore have shared in the benefits of growth. President GARCIA's pursuit of sound trade and macroeconomic policies has cost him political support since his election. Nevertheless, he remains committed to Peru's free-trade path. The United States and Peru completed negotiations on the implementation of the US-Peru Trade Promotion Agreement (PTPA), and the agreement entered into force February 1, 2009, opening the way to greater trade and investment between the two economies.

GDP (purchasing power parity)

$247.3 billion (2008 est.)
$225.2 billion (2007 est.)
$206.8 billion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$127.6 billion (2008 est.)

GDP - real growth rate

9.8% (2008 est.)
8.9% (2007 est.)
7.7% (2006 est.)

GDP - per capita (PPP)

$8,500 (2008 est.)
$7,800 (2007 est.)
$7,300 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 8.5%
industry: 21.2%
services: 70.3% (2008 est.)

Population below poverty line

44.5% (2006)

Labor force

10.2 million (2008 est.)

Labor force - by occupation

agriculture: 0.7%
industry: 23.8%
services: 75.5% (2005)

Unemployment rate

8.1% (2008 est.)
6.9% (2007 est.)
note: data are for metropolitan Lima; widespread underemployment

Household income or consumption by percentage share

lowest 10%: 1.5%
highest 10%: 37.9% (2006)

Distribution of family income - Gini index

49.8 (2005)
46.2 (1996)

Investment (gross fixed)

25.9% of GDP (2008 est.)

Budget

revenues: $38.01 billion
expenditures: $35.29 billion (2008 est.)

Public debt

24% of GDP (2008 est.)
44.1% of GDP (2004 est.)

Inflation rate (consumer prices)

5.8% (2008 est.)
1.8% (2007 est.)

Central bank discount rate

7.25% (31 December 2008)
5.75% (31 December 2007)

Commercial bank prime lending rate

10.54% (31 December 2008)
24.1% (December 2008)

Stock of money

$15.42 billion (31 December 2008)
$14.66 billion (31 December 2007)

Stock of quasi money

$25.32 billion (31 December 2008)
$19.95 billion (31 December 2007)

Stock of domestic credit

$21.98 billion (31 December 2008)
$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

8% (2008 est.)

Electricity - production

30.57 billion kWh (2008 est.)

Electricity - production by source

fossil fuel: 14.5%
hydro: 84.7%
nuclear: 0%
other: 0.8% (2001)

Electricity - consumption

28.97 billion kWh (2008 est.)

Electricity - exports

0 kWh (2008 est.)

Electricity - imports

0 kWh (2008 est.)

Oil - production

110,800 bbl/day (2008 est.)

Oil - consumption

170,000 bbl/day (2007 est.)

Oil - imports

109,000 bbl/day (2007 est.)

Oil - exports

27,390 bbl/day (2007 est.)

Oil - proved reserves

930 million bbl (1 January 2008 est.)

Natural gas - production

3.4 billion cu m (2008 est.)

Natural gas - consumption

3.4 billion cu m (2008 est.)

Natural gas - exports

0 cu m (2008 est.)

Natural gas - imports

0 cu m (2008 est.)

Natural gas - proved reserves

334.7 billion cu m (1 January 2008 est.)

Current Account Balance

-$4.18 billion (2008 est.)
$1.22 billion (2007 est.)

Agriculture - products

asparagus, 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

Exports

$31.53 billion (2008 est.)
$27.88 billion (2007 est.)

Exports - commodities

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

Exports - partners

US 18.9%, China 14.9%, Canada 7.8%, Japan 6.6%, Chile 5.5% (2008)

Imports

$28.44 billion (2008 est.)
$19.6 billion (2007 est.)

Imports - commodities

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

Imports - partners

US 24.5%, China 10.6%, Brazil 7.8%, Chile 5.3%, Ecuador 5.2%, Argentina 4.7%, Colombia 4.1% (2008)

Reserves of foreign exchange and gold

$31.25 billion (31 December 2008 est.)
$27.78 billion (31 December 2007 est.)

Debt - external

$34.59 billion (31 December 2008)
$32.57 billion (31 December 2007)

Stock of direct foreign investment - at home

$30.31 billion (31 December 2008 est.)
$24.74 billion (31 December 2007 est.)

Stock of direct foreign investment - abroad

$2.284 billion (31 December 2008 est.)
$2.284 billion (31 December 2007 est.)

Market value of publicly traded shares

$55.63 billion (31 December 2008)
$106 billion (31 December 2007)
$59.66 billion (31 December 2006)

Economic aid - recipient

$397.8 million (2005)

Currency (code)

nuevo sol (PEN)

Currency (code)

PEN

Exchange rates

nuevo sol (PEN) per US dollar - 2.91 (2008 est.), 3.1731 (2007), 3.2742 (2006), 3.2958 (2005), 3.4132 (2004)

Fiscal year

calendar year