Flag description:
three equal, vertical bands of red (hoist side), white, and red
with the coat of arms centered in the white band; the coat of arms
features a shield bearing a vicuna, cinchona tree (the source of
quinine), and a yellow cornucopia spilling out gold coins, all
framed by a green wreath
Economy Peru
Economy - overview:
Peru's economy reflects its varied geography - an arid coastal
region, the Andes further inland, and tropical lands bordering
Colombia and Brazil. Abundant mineral resources are found in the
mountainous areas, and Peru's coastal waters provide excellent
fishing grounds. However, overdependence on minerals and metals
subjects the economy to fluctuations in world prices, and a lack of
infrastructure deters trade and investment. After several years of
inconsistent economic performance, the Peruvian economy grew by more
than 4 percent per year during the period 2002-2005, with a stable
exchange rate and low inflation. Risk premiums on Peruvian bonds on
secondary markets reached historically low levels in late 2004,
reflecting investor optimism regarding the government's prudent
fiscal policies and openness to trade and investment. Despite the
strong macroeconomic performance, the TOLEDO administration remained
unpopular in 2005, and unemployment and poverty have stayed
persistently high. Economic growth will be driven by the Camisea
natural gas megaproject and by exports of minerals, textiles, and
agricultural products. Peru is expected to sign a free-trade
agreement with the United States in early 2006.
GDP (purchasing power parity):
$167.3 billion (2005 est.)
GDP (official exchange rate):
$69.81 billion (2005 est.)
GDP - real growth rate:
6.4% (2005 est.)
GDP - per capita (PPP):
$6,000 (2005 est.)
GDP - composition by sector: agriculture: 8% industry: 27% services: 65% (2003 est.)
Labor force: 9.06 million (2005 est.)
Labor force - by occupation: agriculture: 9% industry: 18% services: 73% (2001)