Peru has a market oriented economy. Growth from 1997 to 2006 averaged 4.5%, in 2007 the economy grew 9% and in 2008 9.8% making it the fastest growing economy in Latin America[1]. In 2009 due to world recession and low commodity prices growth slowed down to 1% and for 2010 it is expected a robust growth in the economy. Peru adopted a market economy in the early 1990s during the government of Fujimori. After a period of hyperinflation, stagnation, price controls and limitation of foreign investment the economy was opened …

In the 1970s two military governments led by Juan Velazco Alvarado and Francisco Morales Bermudez nationalized a big portion of the economy making them inefficient and uncompetitive. A period of hyperinflation and terrorism followed weakening the economy even further.  But since 1990 the Peruvian economy has been growing rapidly. Alberto Fujimori’s government was corrupt and authoritarian but he created a competitive business environment. His government nationalized many industries and opened the economy to new investment and to market forces and as a result many business groups have emerged.

The informal economy …

The Peruvian economy relies heavily on its natural resources approximately 15% of its GDP depends on it. Its main source of income comes from mining; Peru is one of the largest producers of cooper, gold and zinc in the world. It has large deposits of oil and is a producer of crude petroleum and petroleum products, coffee, potatoes, mangoes, asparagus, textiles and fishmeal. Its main market is the United States which accounts for 23.6% of its total exports followed by the European Union with 18.9%, China 11%, Chile 7.7% and  …

Since the independence of Peru in 1821 the country has experienced bursts of optimism and long periods of disappointments.