ny C.E. QUAINTON; Embassy at the corner of
Avenida Inca Garcilaso de la Vega and Avenida Espana, Lima (mailing
address is P. O. Box 1995, Lima 100, or APO Miami 34031); telephone
[51] (14) 338-000

_#_Flag: three equal, vertical bands of red (hoist side), white, and
red with the coat of arms centered in the white band; the coat of arms
features a shield bearing a llama, cinchona tree (the source of quinine),
and a yellow cornucopia spilling out gold coins, all framed by a green
wreath

_*_Economy
_#_Overview: The Peruvian economy is basically capitalistic, with a
large dose of government welfare programs and government management of
credit. In the 1980s the economy suffered from hyperinflation,
declining per capita output, and mounting external debt. Peru was shut
off from IMF and World Bank support in the mid-1980s because of its
huge debt arrears. An austerity program implemented shortly after the
Fujimori government took office in July 1990 contributed to a third
consecutive yearly contraction of economic activity, but was able to
generate a small recovery in the last quarter. After a burst of
inflation as the program eliminated government price subsidies, monthly
price increases eased to the single-digit level for the first time
since mid-1988. Lima has restarted current payments to multilateral
lenders and, although it faces $14 billion in arrears on its external
debt, is working toward an accommodation with its creditors.

_#_GDP: $19.3 billion, per capita $898; real growth rate - 3.9%
(1990 est.)

_#_Inflation rate (consumer prices): 7,650% (1990)

_#_Unemployment rate: 20.0%; underemployment estimated at 60% (1989)

_#_Budget: revenues $1.3 billion; expenditures $2.1 billion,
including capital expenditures of $NA (1990 est.)

_#_Exports: $3.01 billion (f.o.b., 1990 est.);

commodities--fishmeal, cotton, sugar, coffee, copper, iron ore,
refined silver, lead, zinc, crude petroleum and byproducts;

partners--EC 22%, US 20%, Japan 11%, Latin America 8%, USSR 4%

_#_Imports: $2.78 billion (f.o.b., 1990 est.);

commodities--foodstuffs, machinery, transport equipment, iron and
steel semimanufactures, chemicals, pharmaceuticals;

partners--US 23%, Latin America 16%, EC 12%, Japan 7%,
Switzerland 3%

_#_External debt: $20.0 billion (December 1990)

_#_Industrial production: growth rate - 21% (1989); accounts
for almost 25% of GDP

_#_Electricity: 4,867,000 kW capacity; 15,540 mil