Peru Economy 2008

Economy - overview:
Peru's economy reflects its varied geography - an arid coastal region, the Andes further inland, and tropical lands bordering Colombia and Brazil. Abundant mineral resources are found in the mountainous areas, and Peru's coastal waters provide excellent fishing grounds. However, overdependence on minerals and metals subjects the economy to fluctuations in world prices, and a lack of infrastructure deters trade and investment. After several years of inconsistent economic performance, the Peruvian economy grew by more than 4% per year during the period 2002-06, with a stable exchange rate and low inflation. Growth jumped to 7.5% in 2007, driven by higher world prices for minerals and metals. Risk premiums on Peruvian bonds on secondary markets reached historically low levels in late 2004, reflecting investor optimism regarding the government's prudent fiscal policies and openness to trade and investment. Despite the strong macroeconomic performance, underemployment and poverty have stayed persistently high. Growth prospects depend on exports of minerals, textiles, and agricultural products, and by expectations for the Camisea natural gas megaproject and for other promising energy projects. Upon taking office, President GARCIA announced Sierra Exportadora, a program aimed at promoting economic growth in Peru's southern and central highlands.

GDP (purchasing power parity):
$217.5 billion (2007 est.)

GDP (official exchange rate):
$84.54 billion (2007 est.)

GDP - real growth rate:
7.5% (2007 est.)

GDP - per capita (PPP):
$7,600 (2007 est.)

GDP - composition by sector:
agriculture: 8.4%
industry: 25.6%
services: 66% (2007 est.)

Labor force:
9.419 million (2007 est.)

Labor force - by occupation:
agriculture: 9%
industry: 18%
services: 73% (2001)

Unemployment rate:
7.4% in metropolitan Lima; widespread underemployment (2007 est.)

Population below poverty line:
44.5% (2006)

Household income or consumption by percentage share:
lowest 10%: 1.3%
highest 10%: 40.9% (2003)

Distribution of family income - Gini index:
52 (2003)

Inflation rate (consumer prices):
3.5% (2007 est.)

Investment (gross fixed):
20.8% of GDP (2007 est.)

Budget:
revenues: $30.35 billion
expenditures: $29.8 billion (2007 est.)

Public debt:
29.3% of GDP (2007 est.)

Agriculture - products:
asparagus, coffee, cotton, sugarcane, rice, potatoes, corn, plantains, grapes, oranges, coca; poultry, beef, dairy products; fish, guinea pigs

Industries:
mining and refining of minerals; steel, metal fabrication; petroleum extraction and refining, natural gas; fishing and fish processing, textiles, clothing, food processing

Industrial production growth rate:
5% (2007 est.)

Electricity - production:
24.97 billion kWh (2005 est.)

Electricity - consumption:
22.59 billion kWh (2005)

Electricity - exports:
0 kWh (2005)

Electricity - imports:
0 kWh (2005)

Oil - production:
110,700 bbl/day (2005 est.)

Oil - consumption:
166,000 bbl/day (2005 est.)

Oil - exports:
53,040 bbl/day (2004 est.)

Oil - imports:
121,500 bbl/day (2004)

Oil - proved reserves:
929.6 million bbl (1 January 2006 est.)

natural gas - production:
1.515 billion cu m (2005 est.)

natural gas - consumption:
1.515 billion cu m (2005 est.)

natural gas - exports:
0 cu m (2005 est.)

natural gas - imports:
0 cu m (2005)

natural gas - proved reserves:
236.9 billion cu m (1 January 2006 est.)

Current account balance:
$2.045 billion (2007 est.)

Exports:
$27.14 billion f.o.b. (2007 est.)

Exports - commodities:
copper, gold, zinc, crude petroleum and petroleum products, coffee, potatoes, asparagus, textiles, guinea pigs

Exports - partners:
US 24.1%, China 9.6%, Switzerland 7.1%, Canada 6.8%, Chile 6%, Japan 5.2% (2006)

Imports:
$18.75 billion f.o.b. (2007 est.)

Imports - partners:
US 16.5%, China 10.3%, Brazil 10.3%, Ecuador 7.2%, Colombia 6.1%, Chile 5.8%, Argentina 4.8%, Mexico 4% (2006)

Economic aid - recipient:
$397.8 million (2005)

Reserves of foreign exchange and gold:
$24.06 billion (31 December 2007 est.)

Debt - external:
$27.81 billion (31 December 2007 est.)

Stock of direct foreign investment - at home:
$19.36 billion (2006 est.)

Stock of direct foreign investment - abroad:
$1.476 billion (2006 est.)

Market value of publicly traded shares:
$59.66 billion (2006)

Currency (code):
nuevo sol (PEN)

Exchange rates:
nuevo sol per US dollar - 3.1731 (2007), 3.2742 (2006), 3.2958 (2005), 3.4132 (2004), 3.4785 (2003)