?Peru is ranked 7th out of the 29 South America Countries in terms of economic freedom, with an overall score of 68. 2, and putting it about the world average The Peruvian economy continues to be “moderately free”, and overall competitiveness has been promoted and sustained by ongoing regulatory reforms and open-market policies that support trade and investment. Social conflict surrounding large-scale mining projects undercuts economic stability, entailing elevated risks for long-term economic development.
The country’s strong economic performance in recent years has left the government with large budget surpluses, but administering these resources effectively remains a challenge Peru’s geography is made up of a lowland coastal region, the dense forest of the Amazon and tropical lands bordering Colombia and Brazil. Peru’s Economy is largely influence by their vast geography. Many of the Peruvian’s mineral resources are located in the mountain and coastal regions, and the coastal waters provide great fishing. From a 2013 statistic, the Peruvian economy has been growing by a rate of 6.
4% per year since 2002 with slightly appreciating exchange rate and low inflation. Peru’s free trade policy has continued under the HUMALA administration; since 2006, Peru has signed trade deals with the US, Canada, Singapore, China, Korea, Mexico, Japan, the European Free Trade Association, Chile, and four other countries; concluded negotiations with Venezuela, Costa Rica, and Guatemala; and begun trade talks with two other Central American countries and the Trans-Pacific Partnership. Peru also has signed a trade pact with Chile, Colombia, and Mexico called the Pacific Alliance that rivals Mercosur in combined population, GDP, and trade.
As of 2012 Peru’s Purchasing Power Parity is $332 billion and their GDP per capita is $10,900. 7. 8% of Peru’s GDP is made up from agriculture, 33. 9% is made up from industry, and 58. 4 % is made up from services. Peru’s unemployment rate is 7. 7% and 31. 3% of Peruvian’s fall below the poverty line. Peru’s main exports consist of copper, gold, lead, zinc, tin, silver; petroleum products, coffee, asparagus and other vegetables, fruit, and fish. There is also a substantial tourist industry; However, Economic development has been hindered by the country’s poor transportation network, which has left large parts of Peru isolated.
Peru’s three main export partners are China 18. 3 %, US 15. 2%, and Canada 11. 4% Peru’s main imports consist of Chemicals, plastics, machinery, color TV sets, telecommunication equipment, Paper, cotton, vaccines and medicine. Peru’s three main import partners are US 24. 5%, China 13. 7%, and Brazil 6. 7%. Peru’s currency is the Nuevo sol and the exchange rate as of 2012 Was 2. 65 in comparison to the US dollar Resource: https://www. cia. gov/library/publications/the-world-factbook/geos/pe. html http://youtu. be/v-BktfTJzxI.