Inca Civilization

The Inca civilization was the largest Pre-Columbian civilization in the Americas and Cusco was its capital. The best kept example of its architecture is Machu Picchu.

Machu Picchu

The Sacred City is one of the most significant archeological sites left by the Incas


Fascinating culture and Inca heritage of this beautiful country

Lake Titicaca

Lake Titicaca is the highest navigable lake in the world. It occupies an important place in Inca mythology.

Animals of Peru

Animals in Peru have specialized and adapted to the conditions of its geography. At higher altitude levels, few animals and plants can survive because of the lack of oxygen.

Home » Economy

Peruvian Economy

Submitted by |

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 to new investment and to market forces. In 1990 inflation reached 7,481.69% and in 2010 it is estimated to reach 1.2%.[2]These macroeconomic policies and market reforms have been maintained by the succeeding governments of Toledo and Garcia.

Peru’s Consumer Price Inflation rates from 1988 to 2010est
Year % Rate Year % Rate Year % Rate
1988 666.96 1996 11.42 2004 3.66
1989 3398.27 1997 8.63 2005 1.62
1990 7481.69 1998 7.28 2006 2.00
1991 419.53 1999 3.52 2007 1.78
1992 73.53 2000 3.88 2008 5.79
1993 48.44 2001 2.02 2009 3.20
1994 23.42 2002 0.16 2010 1.20 est
1995 11.06 2003 2.26
International Monetary Fund – 2009 World Economic Outlook

By the end of 2007 the country’s GDP reached $bn92.4 and its GDP per head $4,420, still below the $7,500 average in Latin America. About 35% of its population is poor and 11% is extremely poor. Peru spends 4.3% of its GDP in health and 2.5% in education.[3]

Its economy is driven by services which account for 53.2% of its GDP, followed by industry 26.2% and agriculture 8.7%. Peru has a positive trade balance of bn$8.9 as of 2007[4]. Its exports have seen a dramatic increase in value in the past years due to increased demand in Asia and high world prices of its main commodities, such as copper, gold and zinc. Its main export destinations are United States, European Union, China, Canada and Chile. Its main origins of imports are United States, Brazil, Ecuador and China.

Origins of GDP % of total Components of GDP % of total
Agriculture 8.7 Private consumption 61.5
Industry 11.1 Public consumption 9.6
Manufacturing 15.1 Investment 18.5
Services 53.2 Exports
The Economist World in Figures. 2007 Edition

Peru’s unemployment rate from 1997 to 2007 was on average 8.8%. In 2008 it reached 6.9%, in 2009 8.1% and it is estimated in 2010 to reach 9%.[5] Peru’s high unemployment rate is affected by its informal economy. About 76%of Peruvians are employed in the service sector, 23% in industry and 1% in agriculture.[6]

[1] CIA World Factbook

[2] International Monetary Fund – 2009 World Economic Outlook

[3] The Economist World in Figures 2009 edition

[4] The Economist World in Figures 2009 edition

[5](Spanish) Instituto Nacional de Estadistica e Informatica

[6] The Economist World in Figures 2009 edition


Related Information


Competitiveness of the Peruvian Economy

Some of the reasons why the Peruvian economy remains relatively inefficient are structural: the informal economy, lack of infrastructure, high payroll taxes, lack of access to credit, badly designed taxes and lack of competition.

Peru Trade

Much of the economy depends on the international price of its main commodities, its main export is copper. Its main market is the United States which accounts for 23.6% of its total exports.

Two hundred years of hope

Peru follows the same economic trend as many other countries in Latin America basically, periods of economic recovery followed by periods of bad policy, political instability and economic decline.

Facts about Peru

Interesting facts about Peru


Back to Home page

Tags: , , , , , , , ,