chief of mission: Ambassador P. Michael MCKINLEY embassy: Avenida La Encalada, Cuadra 17s/n, Surco, Lima 33 mailing address: P. O. Box 1995, Lima 1; American Embassy (Lima), APO AA 34031-5000 telephone: [51] (1) 434-3000 FAX: [51] (1) 618-2397
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% per year during the period 2002-06, with a stable exchange rate and low inflation. Growth jumped to 7.5% in 2007, driven by higher world prices for minerals and metals. 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, underemployment and poverty have stayed persistently high. Growth prospects depend on exports of minerals, textiles, and agricultural products, and by expectations for the Camisea natural gas megaproject and for other promising energy projects. Upon taking office, President GARCIA announced Sierra Exportadora, a program aimed at promoting economic growth in Peru's southern and central highlands.
GDP (purchasing power parity):
$219.6 billion (2007 est.)
GDP (official exchange rate):
$109.1 billion (2007 est.)