Economic trends
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 branches 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.
International trade
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.
© Export Entreprises SA, all rights reserved.
Last updates: February 2012
