Capital City: Lima
	It is %T:%M %A in Lima

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Economic trends

Peru’s economy is one of the most dynamic in Latin America, particularly 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. The country registered a GDP growth rate of 7.6% and 7.0% in 2006 and 2007 respectively. Unlike its Latin American neighbours like Brazil and Argentina, the country did not suffer recent currencies devaluation. IMF forecasts a growth rate of 6% in 2008. Vigilant monetary policy and a stable currency will help to keep inflation anchored around the 2.5% central target. The current-account surplus will narrow in 2007-08. However, poverty (50% of the population is still living below poverty line) and unemployment (estimated at around 10% in 2006) are two major challenges.

Main branches of industry

Agriculture contributes around 10% to the country’s GDP and employs nearly one-third of the population. The main agricultural products are cotton, sugarcane, coffee, wheat, rice, corn, and barley. Peru is one of the world's largest producers of coca leaves (and its paste) which is primarily exported to Colombia where it is used to make cocaine. Peru has a large mining industry which was privatised during 1990s and attracts large investments; the most valuable minerals being copper, gold and silver. 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 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, and cement. The tourism sector is also well developed. The services sector contributes nearly 58% to the GDP. The World Bank granted a loan of 20 billion dollars to Peru in March 2005.

International trade

Peru is very open to the international trade. It is a member of WTO and APEC (Asia-Pacific Economic Cooperation forum). Its economy will get substantially benefited by the Trade Promotion Agreement (TPA) with the USA that is due to become operational once it is ratified by the US Congress. 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.