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Peru
See photo of Peru. Copyright owned by photographer at http://www.sxc.hu/photo/933617. See photo of Peru. Copyright owned by photographer at http://www.sxc.hu/photo/933617. See photo of Peru. Copyright owned by photographer at http://www.sxc.hu/photo/933617.

The Economy of Peru

Peru has one of the most vigorous economies in the South American region.  Its GDP in 2007 is estimated at $198 billion, the 49th biggest in the world based on parity purchasing power (PPP).  During that year, it recorded a GDP growth rate of about 9%.  Major industries include mining and refining minerals, steel and metal fabrication, fishing and fish processing, textiles, and food processing.  The services sector records the highest value in percentage of the country’s GDP with 65%; followed by manufacturing at 26.4% and agriculture with 8.5%. 

The Peruvian economy experienced a strong development during the mid 1990s.  Foreign direct investment played an important role with 46% of which was associated to various privatization initiatives.  The economy recorded stagnation from late 1990s to early 2000 mostly attributed to the El Nino phenomenon, global financial crisis, and aggravating trading conditions.  By mid 2002, nearly all sectors have shown significant improvements.  The fishery-export industry saw considerable recovery and at the Antamina copper-zinc mine opened resulting to a registered expansion of the minerals and metals export sector trading.  Net international reserves at the end of 2006 reached $17 billion and more than $20 billion in 2007, almost $11 billion higher over its 2001 performance. 

In 2007, Peru signed a free trade agreement with the US known as the United States-Peru Trade Promotion.  By November of 2008, it is expected to finalize the China-Peru Free Trade Agreement.  It is expected that Peru’s real GDP at the end of 2008 will be among the highest in the Latin American region.  The Peruvian government has also signed an agreement with International Monetary Fund (IMF) which includes very excellent economic growth perspectives over the next 5 years.

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Map of Peru from maps.com
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