Peru » Introduction

Basic Economic Facts

GDP composition by Sector

Peru's economy is one of the most liberally managed markets in Latin America. The country's petroleum, natural gas and power industries are expected to increase due to relatively high domestic and foreign influx of capital in the tourism, agriculture, mining and construction sectors since 1995. In April 2006 Peru signed a Free Trade Agreement with the United States, becoming the second country in the Andean Community of Nations (Comunidad Andina de Naciones,CAN) to sign it. As of June 2006, Peruvian congress has already approved the agreement and the FTA awaits approval by the American congress. Peru is currently negotiating a Free Trade Agreement with Chile, Mexico, Singapore and India.

For the next five years (until 2010) the Peruvian government has registered more than US$ 10 billion in private investment (both domestic and foreign) in the mining and energy sectors, as well as investments of US$ 15 billion in other sectors such as industry, commerce, tourism, seafood and agriculture, which will keep the economy growing annually at levels of 5% or more. Poverty in Peru is high, with a poverty threshold level of 51.2% of the total population. However, the level is reducing slowly and it is expected to diminish to 20% of the population within 10 years.

Peru's economy has become one of the most liberal market economies in Latin America. The country's petroleum, natural gas and power industries are expected to increase due to relatively high domestic and foreign influx of capital in the tourism, agriculture, mining, and construction sectors since 1995. In 2006 the GDP has grown at a strong rate of 7.7% and it is expected to grow 6.5% for 2007, and 6% for the next five years after 2008.