peru's economy

Topics: International trade, Purchasing power parity, Economics Pages: 2 (431 words) Published: September 29, 2013
Peru is ranked 7th out of the 29 South America Countries in terms of economic freedom, with an overall score of 68.2, and putting it about the world average The Peruvian economy continues to be “moderately free”, and overall competitiveness has been promoted and sustained by ongoing regulatory reforms and open-market policies that support trade and investment. Social conflict surrounding large-scale mining projects undercuts economic stability, entailing elevated risks for long-term economic development. The country’s strong economic performance in recent years has left the government with large budget surpluses, but administering these resources effectively remains a challenge

Peru's geography is made up of a lowland coastal region, the dense forest of the Amazon and tropical lands bordering Colombia and Brazil. Peru’s Economy is largely influence by their vast geography. Many of the Peruvian’s mineral resources are located in the mountain and coastal regions, and the coastal waters provide great fishing.

From a 2013 statistic, the Peruvian economy has been growing by a rate of 6.4% per year since 2002 with slightly appreciating exchange rate and low inflation.

Peru's free trade policy has continued under the HUMALA administration; since 2006, Peru has signed trade deals with the US, Canada, Singapore, China, Korea, Mexico, Japan, the European Free Trade Association, Chile, and four other countries; concluded negotiations with Venezuela, Costa Rica, and Guatemala; and begun trade talks with two other Central American countries and the Trans-Pacific Partnership. Peru also has signed a trade pact with Chile, Colombia, and Mexico called the Pacific Alliance that rivals Mercosur in combined population, GDP, and trade.

As of 2012 Peru’s Purchasing Power Parity is $332 billion and their GDP per capita is $10,900.

7.8% of Peru’s GDP is made up from agriculture, 33.9% is made up from industry, and 58.4 % is made up from services.

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