Peru: Economy#
Peru's economy reflects its varied topography - an arid lowland coastal region, the central high sierra of the Andes, the dense forest of the Amazon, with tropical lands bordering Colombia and Brazil. 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 third largest producer of copper.The Peruvian economy grew by an average of 5.6% from 2009-13 with a stable exchange rate and low inflation, which in 2013 was just below the upper limit of the Central Bank target range of 1% to 3%. This growth was due partly to high international prices for Peru's metals and minerals exports, which account for almost 60% of the country's total exports. Growth slipped in 2014 and 2015, 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 28 percentage points since 2002, but inequality persists and continues to pose a challenge for the Ollanta HUMALA administration, which has 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 has 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, concluded negotiations with Guatemala and the Trans-Pacific Partnership, and begun trade talks with Honduras, El Salvador, India, Indonesia, 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.
Economic Facts#
| GDP (purchasing power parity) | $409.9 billion (2016 est.) $395 billion (2015 est.) $382.5 billion (2014 est.) note: data are in 2016 dollars |
|---|---|
| GDP (official exchange rate) | $180.3 billion (2015 est.) |
| GDP - real growth rate | 3.7% (2016 est.) 3.3% (2015 est.) 2.4% (2014 est.) |
| GDP - per capita (PPP) | $13,000 (2016 est.) $12,700 (2015 est.) $12,400 (2014 est.) note: data are in 2016 dollars |
| Gross national saving | 20.9% of GDP (2016 est.) 21.6% of GDP (2015 est.) 22.3% of GDP (2014 est.) |
| GDP - composition, by end use | household consumption: 62.8% government consumption: 13.6% investment in fixed capital: 23.5% investment in inventories: 1.4% exports of goods and services: 22.3% imports of goods and services: -23.6% (2016 est.) |
| GDP - composition, by sector of origin | agriculture: 7.3% industry: 34.2% services: 58.5% (2016 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, mari |
| 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, |
| Industrial production growth rate | 3.2% (2016 est.) |
| Labor force | 17.12 million note: individuals older than 14 years of age (2016 est.) |
| Labor force - by occupation | agriculture: 25.8% industry: 17.4% services: 56.8% (2011) |
| Unemployment rate | 5.9% (2016 est.) 5.2% (2015 est.) note: data are for metropolitan Lima; widespread underemployment |
| Population below poverty line | 25.8% (2012 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: $60.84 billion expenditures: $66.46 billion (2016 est.) |
| Taxes and other revenues | 33.7% of GDP (2016 est.) |
| Budget surplus (+) or deficit (-) | -3.1% of GDP (2016 est.) |
| Public debt | 26.3% of GDP (2016 est.) 23.3% of GDP (2015 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 |
| Fiscal year | calendar year |
| Inflation rate (consumer prices) | 3.4% (2016 est.) 3.5% (2015 est.) note: data are for metropolitan Lima, annual average |
| Central bank discount rate | 5.05% (31 December 2012) 5.05% (31 December 2011) |
| Commercial bank prime lending rate | 16.1% (31 December 2016 est.) 16.1% (31 December 2015 est.) note: domestic currency lending rate, 90 day maturity |
| Stock of narrow money | $32.72 billion (31 December 2016 est.) $29.86 billion (31 December 2015 est.) |
| Stock of broad money | $91.26 billion (31 December 2014 est.) $84.1 billion (31 December 2013 est.) |
| Stock of domestic credit | $57.6 billion (31 December 2016 est.) $49.92 billion (31 December 2015 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.) |
| Current account balance | -$6.801 billion (2016 est.) -$8.374 billion (2015 est.) |
| Exports | $38.09 billion (2016 est.) $34.16 billion (2015 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, allo |
| Exports - partners | China 22.1%, US 15.2%, Switzerland 8.1%, Canada 7% (2015) |
| Imports | $38.35 billion (2016 est.) $36.99 billion (2015 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 22.7%, US 20.7%, Brazil 5.1%, Mexico 4.5% (2015) |
| Reserves of foreign exchange and gold | $60.41 billion (31 December 2016 est.) $61.59 billion (31 December 2015 est.) |
| Debt - external | $69.78 billion (31 December 2016 est.) $67.87 billion (31 December 2015 est.) |
| Stock of direct foreign investment - at home | $94.26 billion (31 December 2016 est.) $86.11 billion (31 December 2015 est.) |
| Stock of direct foreign investment - abroad | $2.914 billion (31 December 2016 est.) $2.815 billion (31 December 2015 est.) |
| Exchange rates | nuevo sol (PEN) per US dollar - 3.363 (2016 est.) 3.185 (2015 est.) 3.185 (2014 est.) 2.8383 (2013 est.) 2.64 (2012 est.) |