Peruopportunity.org

ISSUES AND CHALLENGES

Peru in Context

While Peru has experienced a steady economic growth over recent years, poverty still persists and hovers above 50 percent. Historically, this problem has been attributed to the country's exceptionally high degree of inequality aggravated by the fact that Peru has been one of Latin America's most centralized nations, impeding advancement towards inclusive and democratic development. Decades of political corruption, economic crises, terrorism, and foreign dependance have created significant hurdles impeding the solving of social issues and in establishing a stable infrastructure for civic participation.

	Peru	United States
Gross National Income	$58.2 billion	$11.01 trillion
GNI per Capita	$2,140	$37,870
Total External Debt	$27.5 billion	$862 billion
Population	$27.1 million	$290.8 million
Unemployment	8.7%	5.1%
Labor Force in Agriculture	9%**	0.7%**
Major Agricultural Products	Coffee, sugarcane, cotton, rice, vegetables, fruits, cocoa, poultry, beef, fish**	Wheat, corn, cotton, grains, vegetables, fruits, poultry, beef, forest products, fish**
Population Living on Less Than $2 a Day	37.7%	N/A
Population Living in Rural Areas	26%	22%
Life Expectancy at Birth	70 years	77 years
Infant Mortality Rate	26 deaths per 1,000 live births	7 deaths per 1,000 live births

Other important facts:

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. However, overdependence on minerals and metals subjects the economy to fluctuations in worldwide commodity prices, and a lack of infrastructure deters trade and investment.

After several years of inconsistent economic performance, 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 7.5% in 2007, driven by higher world prices for minerals and metals. Risk premiums on Peruvian bonds on secondary markets reached historically low levels in late 2004, reflecting investor optimism regarding the government's prudent fiscal policies and openness to trade and investment.

Despite the strong macroeconomic performance, underemployment and poverty have stayed persistently high. Growth prospects depend on exports of minerals, textiles, and agricultural products, and by expectations for the Camisea natural gas megaproject and for other promising energy projects.

Rural Peruvians rely in large part on grazing animals to provide their food, fiber and income needs. Although 90.9% of adults can read and write, nearly 65% of rural Peruvians live in poverty.

Figures are for latest year available and where applicable are in U.S. dollars. Sources: “World Development Indicators 2008” by The World Bank, and **”World Factbook 2008” by the CIA.

For more information about Peru:

US Agency for International Development- Peru Mission

USDA Foreign Agricultural Service- Lima Office

The World Bank- Countries

The CIA World Factbook