Embassy (Lima),
APO AA 34031-5000
telephone: [51] (1) 434-3000
FAX: [51] (1) 618-2397

Flag description:
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 vicuna, cinchona tree (the source of
quinine), and a yellow cornucopia 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 more
than 4 percent per year during the period 2002-2006, 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, underemployment and poverty have
stayed persistently high. Economic growth continues to be driven by
the Camisea natural gas megaproject and by exports of minerals,
textiles, and agricultural products. Upon taking office, President
GARCIA announced the formation of Sierria Exportadora, a program
aimed at promoting economic growth in Southern Peru and the
highlands.

GDP (purchasing power parity):
$181.8 billion (2006 est.)

GDP (official exchange rate):
$76.09 billion (2006 est.)

GDP - real growth rate:
6.5% (2006 est.)

GDP - per capita (PPP):
$6,400 (2006 est.)

GDP - composition by sector:
agriculture: 8.5%
industry: 26.4%
services: 53.1% (2006 est.)

Labor force:
9.21 million (2006 est.)

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

Unemployment rate:
7.2% in metropolitan Lima; widespread underemployment (2006 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 f