Peru Economy - 2022

GEOGRAPHICAL NAMES 

Economic overview

Peru's economy reflects its varied topography - an arid lowland coastal region, the central high sierra of the Andes, and the dense forest of the Amazon. A wide range of important mineral resources are found in the mountainous and coastal areas, and Peru's coastal waters provide excellent fishing grounds. Peru is the world's second largest producer of silver and copper.

 

The Peruvian economy grew by an average of 5.6% per year from 2009-13 with a stable exchange rate and low inflation. This growth was due partly to high international prices for Peru's metals and minerals exports, which account for 55% of the country's total exports. Growth slipped from 2014 to 2017, due to weaker world prices for these resources. Despite Peru's strong macroeconomic performance, dependence on minerals and metals exports and imported foodstuffs makes the economy vulnerable to fluctuations in world prices.

 

Peru's rapid expansion coupled with cash transfers and other programs have helped to reduce the national poverty rate by over 35 percentage points since 2004, but inequality persists and continued to pose a challenge for the Ollanta HUMALA administration, which championed a policy of social inclusion and a more equitable distribution of income. Poor infrastructure hinders the spread of growth to Peru's non-coastal areas. The HUMALA administration passed several economic stimulus packages in 2014 to bolster growth, including reforms to environmental regulations in order to spur investment in Peru’s lucrative mining sector, a move that was opposed by some environmental groups. However, in 2015, mining investment fell as global commodity prices remained low and social conflicts plagued the sector.

 

Peru's free trade policy continued under the HUMALA administration; since 2006, Peru has signed trade deals with the US, Canada, Singapore, China, Korea, Mexico, Japan, the EU, the European Free Trade Association, Chile, Thailand, Costa Rica, Panama, Venezuela, Honduras, concluded negotiations with Guatemala and the Trans-Pacific Partnership, and begun trade talks with El Salvador, India, and Turkey. Peru also has signed a trade pact with Chile, Colombia, and Mexico, called the Pacific Alliance, that seeks integration of services, capital, investment and movement of people. Since the US-Peru Trade Promotion Agreement entered into force in February 2009, total trade between Peru and the US has doubled. President Pedro Pablo KUCZYNSKI succeeded HUMALA in July 2016 and is focusing on economic reforms and free market policies aimed at boosting investment in Peru. Mining output increased significantly in 2016-17, which helped Peru attain one of the highest GDP growth rates in Latin America, and Peru should maintain strong growth in 2018. However, economic performance was depressed by delays in infrastructure mega-projects and the start of a corruption scandal associated with a Brazilian firm. Massive flooding in early 2017 also was a drag on growth, offset somewhat by additional public spending aimed at recovery efforts.

Real GDP (purchasing power parity)

$371.29 billion (2020 est.)

$417.88 billion (2019 est.)

$408.87 billion (2018 est.)

note: data are in 2017 dollars

Real GDP growth rate

2.18% (2019 est.)

3.97% (2018 est.)

2.48% (2017 est.)

Real GDP per capita

$11,300 (2020 est.)

$12,900 (2019 est.)

$12,800 (2018 est.)

note: data are in 2017 dollars

GDP (official exchange rate)

$230.707 billion (2019 est.)

Inflation rate (consumer prices)

2.1% (2019 est.)

1.3% (2018 est.)

2.8% (2017 est.)

note: data are for metropolitan Lima, annual average

Credit ratings

Fitch rating: BBB+ (2013)

Moody's rating: A3 (2014)

Standard & Poors rating: BBB+ (2013)

note: The year refers to the year in which the current credit rating was first obtained.

GDP - composition, by sector of origin

agriculture: 7.6% (2017 est.)

industry: 32.7% (2017 est.)

services: 59.9% (2017 est.)

GDP - composition, by end use

household consumption: 64.9% (2017 est.)

government consumption: 11.7% (2017 est.)

investment in fixed capital: 21.7% (2017 est.)

investment in inventories: -0.2% (2017 est.)

exports of goods and services: 24% (2017 est.)

imports of goods and services: -22% (2017 est.)

Agricultural products

sugar cane, potatoes, rice, plantains, milk, poultry, maize, cassava, oil palm fruit, grapes

Industries

mining and refining of minerals; steel, metal fabrication; petroleum extraction and refining, natural gas and natural gas liquefaction; fishing and fish processing, cement, glass, textiles, clothing, food processing, beer, soft drinks, rubber, machinery, electrical machinery, chemicals, furniture

Industrial production growth rate

2.7% (2017 est.)

Labor force

3.421 million (2020 est.)

note: individuals older than 14 years of age

Labor force - by occupation

agriculture: 25.8%

industry: 17.4%

services: 56.8% (2011)

Unemployment rate

6.58% (2019 est.)

6.73% (2018 est.)

note: data are for metropolitan Lima; widespread underemployment

Youth unemployment rate (ages 15-24)

total: 9.5%

male: 8.5%

female: 10.7% (2021 est.)

Population below poverty line

20.2% (2019 est.)

Gini Index coefficient - distribution of family income

42.8 (2018 est.)

51 (2005)

Household income or consumption by percentage share

lowest 10%: 1.4%

highest 10%: 36.1% (2010 est.)

Budget

revenues: 58.06 billion (2017 est.)

expenditures: 64.81 billion (2017 est.)

Budget surplus (+) or deficit (-)

-3.1% (of GDP) (2017 est.)

Public debt

25.4% of GDP (2017 est.)

24.5% of GDP (2016 est.)

note: data cover general government debt, and includes debt instruments issued by government entities other than the treasury; the data exclude treasury debt held by foreign entities; the data include debt issued by subnational entities

Taxes and other revenues

27.1% (of GDP) (2017 est.)

Fiscal year

calendar year

Current account balance

-$3.531 billion (2019 est.)

-$3.821 billion (2018 est.)

Exports

$54.88 billion (2019 est.) note: data are in current year dollars

$55.84 billion (2018 est.) note: data are in current year dollars

$53.823 billion (2017 est.)

Exports - partners

China 29%, United States 12%, Canada 5%, South Korea 5%, Switzerland 5% (2019)

Exports - commodities

copper, gold, refined petroleum, zinc, fishmeal, tropical fruits, lead, iron, molybdenum (2019)

Imports

$51.38 billion (2019 est.) note: data are in current year dollars

$51.41 billion (2018 est.) note: data are in current year dollars

$46.15 billion (2017 est.)

Imports - partners

China 24%, United States 22%, Brazil 6% (2019)

Imports - commodities

refined petroleum, crude petroleum, cars, broadcasting equipment, delivery trucks (2019)

Reserves of foreign exchange and gold

$63.83 billion (31 December 2017 est.)

$61.81 billion (31 December 2016 est.)

Debt - external

$81.333 billion (2019 est.)

$75.467 billion (2018 est.)

Exchange rates

nuevo sol (PEN) per US dollar -

3.599 (2020 est.)

3.3799 (2019 est.)

3.366 (2018 est.)

3.185 (2014 est.)

2.8383 (2013 est.)

NOTE: The information regarding Peru on this page is re-published from the 2022 World Fact Book of the United States Central Intelligence Agency and other sources. No claims are made regarding the accuracy of Peru 2022 information contained here. All suggestions for corrections of any errors about Peru 2022 should be addressed to the CIA or the source cited on each page.