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Peru

Peru Economy Stats

jaacosta47

Author: jaacosta47

Peru has remarkable economic indicators that make it an attractive destination for investors in Latin America. Growth slowed down last year but this was relatively minimal at five percent. It has been predicted to pick up the pace this year. The Latin Focus Group sees a 5.4 percent growth for 2014. It envisions that Peru will lead growth in the region until 2018. The IMF and other economic analysts envisage a growth rate of up to six percent for this year alone. Peru surpassed Colombia in GDP per capita last year and is set to do better than Brazil in 2016.

Despite the recent turmoil affecting emerging markets, the country’s financial system has remained solid due to the low inflation rate, vigorous growth and low external debt level. The Heritage Foundation and The Wall Street Journal gave Peru a score of 67.4 in the economic liberty ranking which exceeded the regional average of 59.7. The total investment rate reached a high of 27.3 percent of GDP in 2013 which topped other economies in the region. Public investment has been one of the key concerns of government action. There was an increase of 27 percent compared to the same period last year. Infrastructure is considered vital although delays to the flagship $5.8 million investment in the Lima metro system have put the award date back to the end of March.

As the foremost advocate and founding member (along with Chile, Colombia and Mexico) of the Pacific Alliance free-trading bloc, Peru celebrated the signing of an agreement to eliminate tariffs on 92 percent of traded products and slowly eliminate tariffs for all other commodities in 17 years. These four nations make up the eight largest economies and the seventh biggest exporter in the world.

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. 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 9% per year in 2007 and 2008, driven by higher world prices for minerals and metals and the government's aggressive trade liberalization strategies, but then fell to less than 1% in 2009 in the face of the world recession and lower commodity export prices. Growth resumed in 2010 at nearly 8%, due partly to increased exports. Peru's rapid expansion has helped to reduce the national poverty rate by about 15% since 2002, though underemployment remains high; inflation has trended downward in 2009, to below the Central Bank's 1-3% target. Despite Peru's strong macroeconomic performance, overdependence on minerals and metals subjects the economy to fluctuations in world prices, and poor infrastructure precludes the spread of growth to Peru's non-coastal areas. Not all Peruvians therefore have shared in the benefits of growth and despite President GARCIA's pursuit of sound trade and macroeconomic policies, persistent inequality has cost him political support. Nevertheless, he remains committed to Peru's free-trade path. Since 2006, Peru has signed trade deals with the United States, Canada, Singapore, and China, concluded negotiations with the European Union, and begun trade talks with Korea, Japan, and others. The US-Peru Trade Promotion Agreement (PTPA) entered into force 1 February 2009, opening the way to greater trade and investment between the two economies.

Definitions

  • Budget > Revenues: Revenues calculated on an exchange rate basis, i.e., not in purchasing power parity (PPP) terms
  • Budget surplus > + or deficit > -: This entry records the difference between national government revenues and expenditures, expressed as a percent of GDP. A positive (+) number indicates that revenues exceeded expenditures (a budget surplus), while a negative (-) number indicates the reverse (a budget deficit). Normalizing the data, by dividing the budget balance by GDP, enables easy comparisons across countries and indicates whether a national government saves or borrows money. Countries with high budget deficits (relative to their GDPs) generally have more difficulty raising funds to finance expenditures, than those with lower deficits.
  • Debt > Government debt > Public debt, share of GDP: Public debt as % of GDP (CIA).

    No date was available from the Wikipedia article, so we used the date of retrieval.

  • Exports: This entry provides the total US dollar amount of merchandise exports on an f.o.b. (free on board) basis. These figures are calculated on an exchange rate basis, i.e., not in purchasing power parity (PPP) terms.
  • GDP: GDP at purchaser's prices is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources. Data are in current U.S. dollars. Dollar figures for GDP are converted from domestic currencies using single year official exchange rates. For a few countries where the official exchange rate does not reflect the rate effectively applied to actual foreign exchange transactions, an alternative conversion factor is used.
  • GDP > Composition, by sector of origin > Services: This entry is derived from Economy > GDP > Composition, by sector of origin, which shows where production takes place in an economy. The distribution gives the percentage contribution of agriculture, industry, and services to total GDP, and will total 100 percent of GDP if the data are complete. Agriculture includes farming, fishing, and forestry. Industry includes mining, manufacturing, energy production, and construction. Services cover government activities, communications, transportation, finance, and all other private economic activities that do not produce material goods.
  • GDP > Per capita: This entry gives the gross domestic product (GDP) or value of all final goods and services produced within a nation in a given year. A nation's GDP at purchasing power parity (PPP) exchange rates is the sum value of all goods and services produced in the country valued at prices prevailing in the United States. This is the measure most economists prefer when looking at per-capita welfare and when comparing living conditions or use of resources across countries. The measure is difficult to compute, as a US dollar value has to be assigned to all goods and services in the country regardless of whether these goods and services have a direct equivalent in the United States (for example, the value of an ox-cart or non-US military equipment); as a result, PPP estimates for some countries are based on a small and sometimes different set of goods and services. In addition, many countries do not formally participate in the World Bank's PPP project that calculates these measures, so the resulting GDP estimates for these countries may lack precision. For many developing countries, PPP-based GDP measures are multiples of the official exchange rate (OER) measure. The difference between the OER- and PPP-denominated GDP values for most of the weathly industrialized countries are generally much smaller. Per capita figures expressed per 1 population.
  • GDP > Per capita > PPP: This entry shows GDP on a purchasing power parity basis divided by population as of 1 July for the same year.
  • GDP > Purchasing power parity per capita: This entry gives the gross domestic product (GDP) or value of all final goods and services produced within a nation in a given year. A nation's GDP at purchasing power parity (PPP) exchange rates is the sum value of all goods and services produced in the country valued at prices prevailing in the United States. This is the measure most economists prefer when looking at per-capita welfare and when comparing living conditions or use of resources across countries. The measure is difficult to compute, as a US dollar value has to be assigned to all goods and services in the country regardless of whether these goods and services have a direct equivalent in the United States (for example, the value of an ox-cart or non-US military equipment); as a result, PPP estimates for some countries are based on a small and sometimes different set of goods and services. In addition, many countries do not formally participate in the World Bank's PPP project that calculates these measures, so the resulting GDP estimates for these countries may lack precision. For many developing countries, PPP-based GDP measures are multiples of the official exchange rate (OER) measure. The difference between the OER- and PPP-denominated GDP values for most of the weathly industrialized countries are generally much smaller. Figures expressed per capita for the same year.
  • GDP per capita: GDP at purchaser's prices is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources. Data are in current U.S. dollars. Dollar figures for GDP are converted from domestic currencies using single year official exchange rates. For a few countries where the official exchange rate does not reflect the rate effectively applied to actual foreign exchange transactions, an alternative conversion factor is used. Figures expressed per capita for the same year.
  • Gross National Income: GNI, Atlas method (current US$). GNI (formerly GNP) is the sum of value added by all resident producers plus any product taxes (less subsidies) not included in the valuation of output plus net receipts of primary income (compensation of employees and prop).
  • Inflation rate > Consumer prices: This entry furnishes the annual percent change in consumer prices compared with the previous year's consumer prices.
  • Population below poverty line: National estimates of the percentage of the population lying below the poverty line are based on surveys of sub-groups, with the results weighted by the number of people in each group. Definitions of poverty vary considerably among nations. For example, rich nations generally employ more generous standards of poverty than poor nations.
  • Public debt: This entry records the cumulatiive total of all government borrowings less repayments that are denominated in a country's home currency. Public debt should not be confused with external debt, which reflects the foreign currency liabilities of both the private and public sector and must be financed out of foreign exchange earnings.
  • Unemployment rate: This entry contains the percent of the labor force that is without jobs. Substantial underemployment might be noted.
STAT AMOUNT DATE RANK HISTORY
Budget > Revenues $62.19 billion 2013 46th out of 223
Budget surplus > + or deficit > - 2.2% of GDP 2012 19th out of 182
Debt > Government debt > Public debt, share of GDP 18.3 CIA 2014 131st out of 153
Exports $45.64 billion 2012 59th out of 189
GDP $196.96 billion 2012 48th out of 177
GDP > Composition, by sector of origin > Services 56.1% 2012 108th out of 189
GDP > Per capita $9,323.90 per capita 2010 43th out of 118
GDP > Per capita > PPP $10,600.00 2012 85th out of 188
GDP > Purchasing power parity per capita $9,387.34 2010 84th out of 181
GDP per capita $6,568.04 2012 76th out of 177
Gross National Income $52.21 billion 2092 1st out of 1
Inflation rate > Consumer prices 3.7% 2012 103th out of 199
Population below poverty line 27.8% 2011 14th out of 31
Public debt 16.6% of GDP 2012 134th out of 149
Unemployment rate 5.2% 2012 87th out of 112

SOURCES: CIA World Factbooks 18 December 2003 to 28 March 2011; CIA World Factbooks 2010, 2011, 2012, 2013; Wikipedia: List of countries by public debt (List) (Public debt , The World Factbook , United States Central Intelligence Agency , accessed on March 21, 2013.); World Bank national accounts data, and OECD National Accounts data files.; CIA World Factbook 2010, 2011, 2012, 2013; CIA World Factbooks 18 December 2003 to 28 March 2011. Population figures from World Bank: (1) United Nations Population Division. World Population Prospects, (2) United Nations Statistical Division. Population and Vital Statistics Report (various years), (3) Census reports and other statistical publications from national statistical offices, (4) Eurostat: Demographic Statistics, (5) Secretariat of the Pacific Community: Statistics and Demography Programme, and (6) U.S. Census Bureau: International Database.; World Bank national accounts data, and OECD National Accounts data files. Population figures from World Bank: (1) United Nations Population Division. World Population Prospects, (2) United Nations Statistical Division. Population and Vital Statistics Report (various years), (3) Census reports and other statistical publications from national statistical offices, (4) Eurostat: Demographic Statistics, (5) Secretariat of the Pacific Community: Statistics and Demography Programme, and (6) U.S. Census Bureau: International Database.; CIA World Factbooks 18 December 2003 to 28 March 2011

Citation

"Peru Economy Stats", NationMaster. Retrieved from http://www.nationmaster.com/country-info/profiles/Peru/Economy

NationMaster

Peru Economy Profiles (Subcategories)

Adjusted savings 3 Labor force 3
Aid 5 Long-term debt 4
Balance of payments 34 Market capitalization of listed companies 4
Bank and trade-related lending 4 Merchandise 4
Budget 15 Merchandise imports 4
Changes in net 4 Micro 4
Commercial service 4 National accounts 105
Commercial service imports 4 Natural gas 8
Companies 39 Net capital account 4
Currency 10 Net current transfers 4
Current account balance 5 Net current transfers from abroad 6
Current transfers 4 Net errors and omissions 4
Debt 73 Net financial flows 20
Economic aid 3 Net income 4
Electricity 8 Net income from abroad 6
Entrepreneurship 12 Net incurrence of liabilities 3
Exports 3 Net trade in goods 4
External balance on goods and services 7 Net trade in goods and services 4
External debt 215 Official development assistance and official aid 4
Final 20 Oil 10
Financial sector 35 Portfolio investment 12
Foreign aid 43 Poverty 27
Foreign direct investment 10 Poverty and inequality 16
GDP 42 Private investment 3
GDP growth 3 Private nonguaranteed debt 4
GDP per capita 4 Public and publicly guaranteed debt service 6
GNI 12 Public and publicly guaranteed (PPG) debt 3
Goods 4 Purchasing power parity 11
Goods imports 4 Reserves 6
Government 12 Retail 3
Government debt 8 Royalty and license fees 8
Government spending 5 Savings 44
Gross capital formation 10 Service 4
Gross domestic savings 6 Service imports 4
Gross fixed capital formation 10 Services 10
Gross national expenditure 9 Spending 73
Gross savings 6 Stock of direct foreign investment 6
Gross value added at factor cost 9 Stocks traded 5
High-technology 4 Tax 71
Household final 23 Total 9
IBRD loans and IDA credits 4 Total debt service 6
Income 24 Tourism 21
Income distribution 4 Tourism expenditures 5
Income payments 4 Tourism receipts 5
Income receipts 4 Tourist arrivals by region of origin 8
Inequality 8 Trade 1541
Inflation 9 Trademark applications 3
Innovation 26 Transnational corporations 4
Interest payments 3 Use of IMF credit 4
International tourism 14 Welfare 5

3

Peru has remarkable economic indicators that make it an attractive destination for investors in Latin America. Growth slowed down last year but this was relatively minimal at five percent. It has been predicted to pick up the pace this year. The Latin Focus Group sees a 5.4 percent growth for 2014. It envisions that Peru will lead growth in the region until 2018. The IMF and other economic analysts envisage a growth rate of up to six percent for this year alone. Peru surpassed Colombia in GDP per capita last year and is set to do better than Brazil in 2016.

Despite the recent turmoil affecting emerging markets, the country’s financial system has remained solid due to the low inflation rate, vigorous growth and low external debt level. The Heritage Foundation and The Wall Street Journal gave Peru a score of 67.4 in the economic liberty ranking which exceeded the regional average of 59.7. The total investment rate reached a high of 27.3 percent of GDP in 2013 which topped other economies in the region. Public investment has been one of the key concerns of government action. There was an increase of 27 percent compared to the same period last year. Infrastructure is considered vital although delays to the flagship $5.8 million investment in the Lima metro system have put the award date back to the end of March.

As the foremost advocate and founding member (along with Chile, Colombia and Mexico) of the Pacific Alliance free-trading bloc, Peru celebrated the signing of an agreement to eliminate tariffs on 92 percent of traded products and slowly eliminate tariffs for all other commodities in 17 years. These four nations make up the eight largest economies and the seventh biggest exporter in the world.

Posted on 25 May 2014

jaacosta47

jaacosta47

423 Stat enthusiast