spilling out gold coins, all
framed by a green wreath

Economy Peru

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 an
average 4 percent per year during the period 2002-2004, with a
stable exchange rate and low inflation. 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, the TOLEDO
administration remained unpopular in 2004, and unemployment and
poverty have stayed persistently high.

GDP (purchasing power parity):
$155.3 billion (2004 est.)

GDP - real growth rate:
4.5% (2004 est.)

GDP - per capita:
purchasing power parity - $5,600 (2004 est.)

GDP - composition by sector:
agriculture: 8%
industry: 27%
services: 65% (2003 est.)

Labor force:
11 million (2004 est.)

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

Unemployment rate:
9.6% in metropolitan Lima; widespread underemployment (2004 est.)

Population below poverty line:
54% (2003 est.)

Household income or consumption by percentage share:
lowest 10%: 0.8%
highest 10%: 37.2% (2000)

Distribution of family income - Gini index:
49.8 (2000)

Inflation rate (consumer prices):
3.8% (2004 est.)

Investment (gross fixed):
17.8% of GDP (2004 est.)

Budget:
revenues: $13.6 billion
expenditures: $14.6 billion, including capital expenditures of $1.8
billion, for general government, excluding private enterprises (2004
est.)

Public debt:
44.1% of GDP (2004 est.)

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

Industries:
mining and refining of minerals and metals, petroleum extraction
and refining, natural gas, fishing and fish processin