Peru

Capital: Lima

Local time:
It is %T:%M %A in Lima

GDP growth rate: 6.0% in 2013

FDI stock: 41 849 million USD in 2010

Economic trends

Between 2004-2007 Peru enjoyed a cycle of sustained growth of nearly 7% annually, thanks to continuous decade-long liberal economic policy. These focused mainly on maintaining monetary stability and fiscal balance, as well as a very open trade policy, aiming to sign the maximum number of free trade agreements (including with the EU, signed in April 2011) and position Peru as a regional hub for trade between Latin America and the APEC countries.

After experiencing a significant slowdown in 2009, 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 of over 8%, and continued in 2011 with 6.5% and a second consecutive year of growth, supported by the revival of global trade, the dynamism of domestic demand and the performance of investments.

Despite the fears of the effects of a new international crisis on external demand, the outlook of the Peruvian economy is now very good. The IMF maintains its forecast of a growth rate of nearly 5.6% in 2012, making Peru a leader among the regional economies.

In spite of the net progress achieved, in 2012, 34% of the population still lives below the poverty line, under-employment affects 60% of the population, unemployment is 8% and the informal economy represents 70% of employment.  There is a strong concentration of wealth and significant inequalities.

Main branches of industry

Agriculture contributes more than 17.9% 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 generates 23.6% 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 58.5% 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.

The United States is Peru's largest trading partner and a free trade agreement between the two countries was signed in 2006 and came into force on February 1, 2009. Moreover, about one million Peruvians are registered in the Peruvian consulates in the United States, the primary destination of the Peruvian Diaspora.

China, Peru's second largest trading partner since 2009, could quickly occupy the first place because of the effects of a free-trade agreement coming into force in 2010.

Although the EU is also a major trading, investment and developmental assistance partner, it only ranks third among Peru's trading partners.