Peru Economy

Is Peru a rich country?

Peru's economy reflects its varied topography - an arid lowland coastal region, the central high sierra of the Andes, and the dense forest of the Amazon. 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 copper.

The Peruvian economy grew by an average of 5.6% per year from 2009-13 with a stable exchange rate and low inflation. This growth was due partly to high international prices for Peru's metals and minerals exports, which account for 55% of the country's total exports. Growth slipped from 2014 to 2017, 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 over 35 percentage points since 2004, but inequality persists and continued to pose a challenge for the Ollanta HUMALA administration, which 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 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, Honduras, concluded negotiations with Guatemala and the Trans-Pacific Partnership, and begun trade talks with El Salvador, India, 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. President Pedro Pablo KUCZYNSKI succeeded HUMALA in July 2016 and is focusing on economic reforms and free market policies aimed at boosting investment in Peru. Mining output increased significantly in 2016-17, which helped Peru attain one of the highest GDP growth rates in Latin America, and Peru should maintain strong growth in 2018. However, economic performance was depressed by delays in infrastructure mega-projects and the start of a corruption scandal associated with a Brazilian firm. Massive flooding in early 2017 also was a drag on growth, offset somewhat by additional public spending aimed at recovery efforts.

Peru Economy Data

What is the GDP of Peru?

GDP - Gross Domestic Product (PPP) $372,700,000,000 (USD)
GDP - official exchange rate $179,900,000,000 (USD)
GDP - real growth rate 2.4%
GDP Per Capita $12,300.00 (USD)
GDP by Sector- agriculture 7%
GDP by Sector- Industry 34.5%
GDP by Sector- services 58.5%
GDP - composition, by end use household consumption: 63.2%

government consumption: 12.7%

investment in fixed capital: 23.8%

investment in inventories: 1.1%

exports of goods and services: 22.4%

imports of goods and services: -23.2%
Population Below Poverty Line 31.3%
Inflation Rate 3.6%
Labor Force 16,200,000
Labor Force By Occupation- agriculture 25.8%
Labor Force By Occupation- industry 17.4%
Labor Force By Occupation- services 56.8%
Unemployment Rate 7.7%
Unemployment - note data are for metropolitan Lima; widespread underemployment
Fiscal Year calendar year
Annual Budget $58,150,000,000 (USD)
Budget Surplus or Deficit - percent of GDP 1%
Public Debt (% of GDP) 18.3%
Taxes and other revenues - percent of GDP 29%
Major 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, electrical machinery, chemicals, furniture
Industrial Growth Rate 5%
Agriculture Products asparagus, coffee, cocoa, cotton, sugarcane, rice, potatoes, corn, plantains, grapes, oranges, pineapples, guavas, bananas, apples, lemons, pears, coca, tomatoes, mangoes, barley, medicinal plants, palm oil, marigold, onion, wheat, dry beans; poultry, beef, pork, dairy products; guinea pigs; fish
Currency Code nuevo sol (PEN)
Child Labor - % of children ages 5-14 34%
Child Labor - # of children ages 5-14 2,545,855
Child Labor - note note: data represents children ages 5-17
Commercial Bank Prime Lending Rate 20.3%
Commercial Bank Prime Lending Rate - note note: domestic currency lending rate, 90 day maturity

Labor Force by Occupation- As reported by Peru

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