Peru

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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, showing strong growth over the past five years. Recent economic expansion has been driven by construction, mining, investments (particularly in the Camisea natural gas project), domestic demand, and exports. Unlike its Latin American neighbors such as Brazil and Argentina, the country did not suffer from the recent currency devaluation, thanks to a vigilant monetary policy and a stable currency. The county should keep inflation anchored around the 2.5% central target. In the coming years, Peru will have to face two main challenges: poverty (50% of the population is still living below the poverty line) and unemployment (estimated at around 10%).

Main indicators	2006	2007	2008	2009	2010
GDP (billions USD)	92.31	107.40	127.60e	122.95	130.44
GDP (constant prices, annual % change)	7.7	8.9	9.8e	3.5e	4.5
GDP per capita (USD)	3,340	3,806e	4,453	4,225	4,414e
Inflation rate (%)	2.0	1.8	5.8e	4.1	2.5
Unemployment rate (% of the labor force)	7.6	6.9	8.3	-	-
Current Account (billions USD)	2.76	1.51	-4.18	-4.09	-4.14
Current Account (in % of GDP)	3.0	1.4	-3.3e	-3.3e	-3.2e

Source: IMF - World Economic Outlook Database ; CIA - The world factbook

Note: (e) Estimated data

Main sectors of industry

Agriculture contributes around 10% to the country’s GDP and employs barely 1% of the population. The main agricultural products are cotton, sugarcane, coffee, wheat, rice, corn, and barley.

The industry sector employs almost 24% of the population. Peru has a large mining industry which was privatized during the1990s and attracts large investments. Peru is the world’s second-largest producer of silver, sixth-largest producer of gold and copper, and an important supplier of zinc and lead. Peru is also a source of both natural gas and petroleum, although the country is a net energy importer.

Peru's principal manufacturing activities include production of textiles, consumer goods, processed food and fish products. The tourism sector is also well developed. The services sector contributes nearly 56% to GDP.

Breakdown of economic activity by sector	Agriculture	Industry	Services
Employment by sector (in % of total employment)	0.7	23.8	75.5
Value added (in % of GDP)	6.6	37.0	56.4
Value added (annual % change)	3.5	9.9	9.6

- last available data.

Monetary indicators	2004	2005	2006	2007	2008
Peruvian Nuevo Sol (PEN) - Average annual exchange rate for 1 USD	3.41	3.30	3.27	3.13	2.92

Source: World Bank - World Development Indicators

Indicator of economic freedom

Score:: 64.6/100
Position:: moderately free
World Rank:: 57 out of 179
Regional Rank:: 11 out of 29

Distribution of Economic freedom in the world
Source: 2009 Index of Economic freedom, Heritage Foundation

Country risk

See the country risk analysis provided by Ducroire.

Foreign trade in figures

Peru is very open to international trade. It is a member of the WTO. Its economy benefits substantially from the Trade Promotion Agreement (TPA) with the USA. Peru’s top three export partners are the USA, China and Chile. The commodities mainly exported are ores, precious stones, copper, and mineral fuels & oils. The top three import partners are the USA, China and Brazil. Peru mainly imports mineral fuels & oils, machinery, electronic equipment, plastics and vehicles.

Foreign trade indicators	2003	2004	2005	2006	2007
Imports of goods (millions USD)	8,205	9,805	12,082	14,866	19,599
Exports of goods (millions USD)	9,091	12,809	17,368	23,800	27,956
Imports of services (millions USD)	2,616	2,725	3,123	3,428	4,270
Exports of services (millions USD)	1,716	1,993	2,289	2,647	3,343
Imports of goods and services (annual % change)	3.6	9.8	10.9	13.1	21.3
Exports of goods and services (annual % change)	6.3	15.2	15.2	0.8	6.2
Imports of goods and services (in % of GDP)	17.8	17.8	19.2	19.9	22.4
Exports of goods and services (in % of GDP)	17.7	21.5	25.1	28.5	28.9
Trade Balance (millions USD)	886	3,004	5,286	8,934	8,356
Trade Balance (including service) (millions USD)	-14	2,273	4,452	8,153	7,429
Foreign trade (in % of GDP)	35.5	39.3	44.3	48.4	51.3

Source: World Bank

Main partner countries

Main customers (% of exports)	2008
United States	18.6%
China	12.0%
Switzerland	10.9%
Canada	6.3%
Japan	5.9%
Chile	5.9%
Venezuela	3.5%
Germany	3.3%
Spain	3.3%
Italy	3.0%
Brazil	2.9%
Netherlands	2.4%
Colombia	2.3%
South Korea	1.8%
Ecuador	1.6%
Belgium	1.3%
United Kingdom	1.2%
Bolivia	1.1%
Mexico	1.0%
Panama	0.9%
See more countries	46.3%

Main suppliers (% of imports)	2007
United States	17.7%
China	12.1%
Brazil	9.2%
Ecuador	7.4%
Argentina	5.5%
Colombia	4.8%
Chile	4.3%
Japan	3.9%
Mexico	3.7%
Germany	3.4%
South Korea	2.6%
Angola	2.6%
Italy	1.8%
Canada	1.6%
Nigeria	1.4%
Spain	1.4%
India	1.2%
Venezuela	1.1%
France	0.9%
Sweden	0.8%
See more countries	48.1%

Source: Comtrade

Main products

Main exports (% of exports)	2008
Ores, slag and ashOres, slag and ash	27.5%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	20.1%
Copper and articles thereofCopper and articles thereof	10.2%
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	9.1%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	4.8%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	4.6%
Coffee, tea, maté and spicesCoffee, tea, maté and spices	2.5%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	1.4%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	1.3%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	1.2%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	1.2%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	1.2%
Tin and articles thereofTin and articles thereof	1.1%
Zinc and articles thereofZinc and articles thereof	1.1%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	1.0%
Plastics and articles thereofPlastics and articles thereof	1.0%
Lead and articles thereofLead and articles thereof	0.8%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	0.7%
Preparations of meat, of fish or of crustaceans,...Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates	0.6%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	0.6%
Iron and steelIron and steel	0.5%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	0.5%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	0.3%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	0.3%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.3%
Wool, fine or coarse animal hair; horsehair yarn...Wool, fine or coarse animal hair; horsehair yarn and woven fabric	0.3%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.3%
Knitted or crocheted fabricsKnitted or crocheted fabrics	0.3%
Articles of iron or steelArticles of iron or steel	0.3%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	0.3%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	0.3%
Man-made staple fibresMan-made staple fibres	0.3%
CottonCotton	0.3%
Cocoa and cocoa preparationsCocoa and cocoa preparations	0.3%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.2%
Ceramic productsCeramic products	0.2%
Rubber and articles thereofRubber and articles thereof	0.2%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.2%
Oil seeds and oleaginous fruits; miscellaneous...Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder	0.1%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.1%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.1%
CerealsCereals	0.1%
Other base metals; cermets; articles thereofOther base metals; cermets; articles thereof	0.1%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	0.1%
Miscellaneous chemical productsMiscellaneous chemical products	0.1%
Sugars and sugar confectionerySugars and sugar confectionery	0.1%
Wadding, felt and nonwovens; special yarns; twine,...Wadding, felt and nonwovens; special yarns; twine, cordage, ropes and cables and articles thereof	0.1%
See more products	28.3%

Main imports (% of imports)	2007
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	18.7%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	14.9%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	9.9%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	7.6%
Plastics and articles thereofPlastics and articles thereof	5.7%
Iron and steelIron and steel	4.1%
CerealsCereals	4.0%
Articles of iron or steelArticles of iron or steel	2.7%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	2.2%
FertilizersFertilizers	1.8%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	1.8%
Rubber and articles thereofRubber and articles thereof	1.7%
Organic chemicalsOrganic chemicals	1.6%
Pharmaceutical productsPharmaceutical products	1.5%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	1.5%
Miscellaneous chemical productsMiscellaneous chemical products	1.3%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	1.3%
CottonCotton	1.1%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	1.0%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	0.8%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.7%
Glass and glasswareGlass and glassware	0.6%
Sugars and sugar confectionerySugars and sugar confectionery	0.6%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	0.6%
Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0.6%
Aluminium and articles thereofAluminium and articles thereof	0.5%
Miscellaneous edible preparationsMiscellaneous edible preparations	0.5%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	0.5%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	0.5%
Man-made filamentsMan-made filaments	0.5%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	0.5%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	0.5%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	0.4%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.4%
Man-made staple fibresMan-made staple fibres	0.4%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.4%
Ceramic productsCeramic products	0.3%
Oil seeds and oleaginous fruits; miscellaneous...Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder	0.3%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.3%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	0.3%
Pulp of wood or of other fibrous cellulosic...Pulp of wood or of other fibrous cellulosic material; recovered (waste and scrap) paper or paperboard	0.3%
Miscellaneous manufactured articlesMiscellaneous manufactured articles	0.3%
Beverages, spirits and vinegarBeverages, spirits and vinegar	0.3%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.3%
Wadding, felt and nonwovens; special yarns; twine,...Wadding, felt and nonwovens; special yarns; twine, cordage, ropes and cables and articles thereof	0.2%
Albuminoidal substances; modified starches; glues;...Albuminoidal substances; modified starches; glues; enzymes	0.2%
Products of the milling industry; malt; starches;...Products of the milling industry; malt; starches; inulin; wheat gluten	0.2%
Impregnated, coated, covered or laminated textile...Impregnated, coated, covered or laminated textile fabrics; textile articles of a kind suitable for industrial use	0.2%
Photographic or cinematographic goodsPhotographic or cinematographic goods	0.2%
Knitted or crocheted fabricsKnitted or crocheted fabrics	0.2%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.2%
Articles of leather; saddlery and harness; travel...Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut)	0.2%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	0.2%
Meat and edible meat offalMeat and edible meat offal	0.2%
Copper and articles thereofCopper and articles thereof	0.2%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	0.2%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	0.1%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	0.1%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.1%
Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and worn textile articles; rags	0.1%
Special woven fabrics; tufted textile fabrics;...Special woven fabrics; tufted textile fabrics; lace; tapestries; trimmings; embroidery	0.1%
Tobacco and manufactured tobacco substitutesTobacco and manufactured tobacco substitutes	0.1%
See more products	43.3%

Source: Comtrade

See more products: More imports (Intracen Data)
More exports (Intracen Data)

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

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: Alan García Pérez (since July 2006) – PAP
Prime Minister: Yehude SIMON Munaro (since October 2008 ) - PAP
Next election dates: Presidential: April 2011
Congress: April 2011

Indicator of freedom of the press

World Rank:: 108/173
Evolution:: 9 places up compared to 2007

Source: Worldwide Press Freedom Index 2008, Reporters Without Borders

Indicator of political freedom

Ranking:: Free
Political freedom:: 2/7
Civil liberties:: 3/7

Map of freedom 2008
Source: Freedom House

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