Economy

Peru’s economy has experienced significant growth in the last 15 years [when?]. It is considered an Emerging Market according to the MSCI. Peru had a high Human Development Index score of 0.806, according to a 2008 report. Its 2008 per capita income was US$8,594; by 2009, 34.8% of its total population is poor, including 11.5% that is extremely poor. Historically, the country’s economic performance has been tied to exports, which provide hard currency to finance imports and external debt payments. Although exports have provided substantial revenue, self-sustained growth and a more egalitarian distribution of income have proven elusive.

Peruvian economic policy has varied widely over the past decades. The 1968–1975 government of Juan Velasco Alvarado introduced radical reforms, which included agrarian reform, the expropriation of foreign companies, the introduction of an economic planning system, and the creation of a large state-owned sector. These measures failed to achieve their objectives of income redistribution and the end of economic dependence on developed nations.

Despite these adverse results, most reforms were not reversed until the 1990s, when the liberalizing government of Alberto Fujimori ended price controls, protectionism, restrictions on foreign direct investment, and most state ownership of companies. Reforms have permitted sustained economic growth since 1993, except for a slump after the 1997 Asian financial crisis.

Services account for 53% of Peruvian gross domestic product, followed by manufacturing (22.3%), extractive industries (15%), and taxes (9.7%).Recent economic growth has been fueled by macroeconomic stability, improved terms of trade, and rising investment and consumption. Trade is expected to increase further after the implementation of a free trade agreement with the United States signed on April 12, 2006. Peru’s main exports are copper, gold, zinc, textiles, and fish meal; its major trade partners are the United States, China, Brazil, and Chile.

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