The Republic of Peru is located on the west central coast of South America and is bordered by the Pacific Ocean to the west, Chile to the South, Bolivia and Brazil to the east and Colombia and Ecuador to the north.
South America Map
According to the National Institute of Statistics and Informatics (INEI), Peru has a population of 32 million 131 thousand 400 inhabitants; likewise, it is projected that in 2021, celebration of the Bicentennial of its Independence, Peru will have a population of 33 million 35 thousand inhabitants.
The current President Martin Vizcarra has among his priorities to close the infrastructure gap in Peru, not only promoting the participation of the private sector in the projects needed for the development of the country but also facilitating business and simplifying procedures.
President Martin Vizcarra
Peru is an emerging, social market economy characterized by a high level of foreign trade. The inequality of opportunities has declined: between 1991 and 2012, Peru’s rating on The World Bank’s Human Opportunity Index improved substantially as increased public investment in water, sanitation and electric power, that has allowed the downward trend in inequality of opportunities. Its economy is diversified, although commodity exports still make up a significant proportion of economic activity and this subject the economy to the risks of price volatility in the international markets. Trade and industry are centralized in Lima, but agricultural exports have led to development in all the regions.
Peruvian economic performance has been tied to exports, which provide hard currency to finance imports and external debt payments. Peru’s main exports are copper, gold, zinc, textiles (wear), chemicals, pharmaceuticals, manufactures, machinery, services, and fish meal.
Industry: Mining and refining of minerals; petroleum extraction and refining, natural gas and natural gas liquefaction; steel, metal fabrication; fishing and fish processing; cement, textiles, glass, clothing, beer, rubber, soft drinks, machinery, chemicals, and furniture.
Exports: Gold, copper, lead, zinc, tin, iron ore, silver; crude petroleum and petroleum products, natural gas; coffee, asparagus, and other fruits and vegetables; chemicals; alloys.
Agriculture: Asparagus, coffee, cocoa, cotton, rice, corn, potatoes, sugarcane, oranges, pineapples, grapes, bananas, guavas, apples, pears, lemons, tomatoes, coca, mangoes, avocados, onions, wheat, dry beans, fish, dairy products, beef, pork, and guinea pigs.
The Ministry of Economy and Finance (MEF) published the Multiannual Macroeconomic Framework 2020-2023 (MMM) in which GDP growth of 3% is projected for 2019 and 4.4% on average for the next four years, with a path Gradual acceleration from 4.0% in 2020 to 5.0% in 2023. With this projection, Peru is expected to continue leading growth in the region, despite the adverse international environment.
This acceleration will be driven, mainly, by domestic demand reflected in the strengthening of private and public investment; in addition, economic policy measures aimed at improving the country’s productivity and competitiveness.