Peru/Economy

Economy - overview: The Peruvian economy has become increasingly market-oriented, with major privatizations completed since 1990 in the mining, electricity, and telecommunications industries. Thanks to strong foreign investment and the cooperation between the FUJIMORI government and the IMF and World Bank, growth was strong in 1994-97 and inflation was brought under control. In 1998, El Nino's impact on agriculture, the financial crisis in Asia, and instability in Brazilian markets undercut growth. And 1999 was another lean year for Peru, with the aftermath of El Nino and the Asian financial crisis working its way through the economy. Lima did manage to complete negotiations for an Extended Fund Facility with the IMF in June 1999, although it subsequently had to renegotiate the targets. Pressure on spending is growing in the run-up to the 2000 elections. Nevertheless, improved commodity prices and the recovery of the fishing sector should help drive GDP growth above the 5% mark in 2000.

GDP: purchasing power parity - $116 billion (1999 est.)

GDP - real growth rate: 2.4% (1999 est.)

GDP - per capita: purchasing power parity - $4,400 (1999 est.)

GDP - composition by sector:
agriculture: 13%
industry: 42%
services: 45% (1998)

Population below poverty line: 54% (1991 est.)

Household income or consumption by percentage share:
lowest 10%: 1.9%
highest 10%: 34.3% (1994)

Inflation rate (consumer prices): 5.5% (1999 est.)

Labor force: 7.6 million (1996 est.)

Labor force - by occupation: agriculture, mining and quarrying, manufacturing, construction, transport, services

Unemployment rate: 7.7%; extensive underemployment (1997)

Budget:
revenues: $8.5 billion
expenditures: $9.3 billion, including capital expenditures of $2 billion (1996 est.)

Industries: mining of metals, petroleum, fishing, textiles, clothing, food processing, cement, auto assembly, steel, shipbuilding, metal fabrication

Industrial production growth rate: 1.2% (1996)

Electricity - production: 18.28 billion kWh (1998)

Electricity - production by source:
fossil fuel: 24.53%
hydro: 74.79%
nuclear: 0%
other: 0.68% (1998)

Electricity - consumption: 17.002 billion kWh (1998)

Electricity - exports: 0 kWh (1998)

Electricity - imports: 2 million kWh (1998)

Agriculture - products: coffee, cotton, sugarcane, rice, wheat, potatoes, plantains, coca; poultry, beef, dairy products, wool; fish

Exports: $5.9 billion (f.o.b., 1999 est.)

Exports - commodities: fish and fish products, copper, zinc, gold, crude petroleum and byproducts, lead, coffee, sugar, cotton

Exports - partners: US 25%, China 8%, Japan 7%, Switzerland, Germany, UK, Brazil (1997)

Imports: $8.4 billion (c.i.f., 1999 est.)

Imports - commodities: machinery, transport equipment, foodstuffs, petroleum, iron and steel, chemicals, pharmaceuticals

Imports - partners: US 19%, Colombia 6%, Venezuela 5%, Chile 4%, Brazil 4% (1997)

Debt - external: $31 billion (1998 est.)

Economic aid - recipient: $895.1 million (1995)

Currency: 1 nuevo sol (S/.) = 100 centimos

Exchange rates: nuevo sol (S/.) per US$1 - 3.500 (January 2000), 3.383 (1999), 2.930 (1998), 2.664 (1997), 2.453 (1996), 2.253 (1995)

Fiscal year: calendar year