Economy of Peru

Economy of Peru

According to businesscarriers, Peru occupies a middle position in Latin America in terms of size and level of economic development. The volume of GDP is 57.8 billion US dollars (2002). The GDP growth rate in 2002 was 5.2%. The mining industry (12.0%), the manufacturing industry (5.3%), and fisheries (3.1%) grew at the highest rates. The number of economically active population is 3.94 million people. Unemployment 9.0%, underemployment 47.6%. Inflation 1.5%. The share of agriculture in GDP is 8.6%, industry – 29.8%, finance and services, including transport and tourism – 61.6%. The share of employment in agriculture is 15.1%, industry – 20.8%, finance and services, including transport and tourism – 64.1%.

The leading industry is mining. It accounts for approx. 10% of GDP; mining provides 1/2 of foreign exchange earnings. Peru is among the top ten world producers and exporters of bismuth, tungsten, gold, indium, cadmium, copper, molybdenum, tin, mercury, lead, selenium, silver, tellurium, and zinc. Production of copper 647.5 thousand tons, gold 155.6 tons, crude oil 35.4 million barrels. Non-ferrous and ferrous metallurgy, textile, leather and footwear, oil refining and petrochemical industries, and fish processing are developed. The country ranks first in the world in terms of production (1.8 million tons in 2002) and export of fishmeal. There are separate machine-building enterprises operating on the basis of imported components. A feature of the development of the manufacturing industry is a high level of territorial concentration (most enterprises are located in the city of Minsk). Lima and its suburbs). Electricity generation 19.7 billion kWh. Hydroelectric power plants provide 81% of electricity.

The total sown area is 1.36 million hectares, incl. under rice 173 thousand hectares, under corn 404, under potatoes 212, under wheat 90, cotton 42 thousand hectares. Pasture animal husbandry (cattle, sheep, llamas, alpacas). The main cash crops are: cotton, sugar cane, coffee, cocoa. Food crops – rice (2.1 million tons in 2002), potatoes (3.3 million tons), corn. Fishing (sardine, horse mackerel, anchovy, etc.), focused on the processing of marine biological resources into fish oil and fishmeal, is experiencing a crisis caused by a decrease in catch volumes due to the deterioration of natural conditions (climatic phenomenon “El Niño”) and the protectionist policy of the state. Anchovy catch in 2002 – 8.1 million tons.

The length of railways is 2102 km, incl. with a standard gauge of 1695 km, roads 72,900 km (including 8,700 km with a hard surface). Pipeline transport: oil pipelines (length 800 km), gas pipelines (64 km). 9 sea (main – Callao) and 3 river (main – Iquitos) ports. There are 49 airports with paved runways. St. 1.8 million fixed telephone lines. In 2001, there were 136.7 fixed telephone lines and mobile phones per 1,000 inhabitants. OK. 3 million Internet users.

Developed educational and adventure tourism (1.6 million foreign tourists per year).

Peru is an agro-industrial country with a high level of development of the mining industry. The leading sectors of the Peruvian economy are largely oriented to the external market and are highly dependent on the world price environment for exported products. The backward agriculture does not meet the needs of the population in food: its main types are imported. The political crisis of 2000 had a negative impact on economic development, causing a decline in business activity and domestic demand, an increase in liquidity shortage, and a decrease in the investment attractiveness of the country. In 2001, GDP growth was only 0.5%. A significant increase in this indicator in 2002 (up to 5.2%) is explained by the revision of the base year in its calculation. Government attempts to stabilize the situation through neo-liberal reforms (in particular, resumption of the privatization process) encounter opposition from the population, expressed in mass strikes and demonstrations. Under these conditions, in order to reactivate the economy, the authorities have taken a course to increase public spending. The main guidelines for economic policy are the development of the agricultural sector and tourism, the promotion of exports, the attraction of private investment, the support of national producers, the construction of cheap housing, and the decentralization of the country’s administration.

Economy of Peru