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Peru - Economic Development


Jordi Figueras

on 27 January 2011

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Transcript of Peru - Economic Development

Economic Development
Capital: Lima

Other major cities: Arequipa, Chiclayo, Cuzco
Independence from Spain
- Declared July 28, 1821
- Consolidated December 9, 1824
- Recognized August 14, 1879
Area: 496,225 sq miles
1 285 220 km2
Currency: Nuevo Sol
Spanish (principal), Quechua, Aymara
Life expectancy
69 years (men), 74 years (women)
Population: 28.2 million
President : Alan García
"the best performer in Latin America"
GDP growth jumped from 7.7% in 2006
to a remarkable
8.9% and 9.8% in 2007 and 2008.
"a boom in mining exports"
"the promise to tackle poverty
and boost economic growth"
Free Trade Agreement with the United States
deals with Canada and China and started
trade negotiations with the European Union
closer relations with
his Latin American neighbors
decrease of poverty
The government of Peru has asked the Bank to prepare a diagnosis and a set of recommendations to improve its social programs
a recommendation was made to improve targeting and efficiency of the main programs that get 80% of expenditure, health and education accepted. These programs include a conditional cash transfers program, investment funds, urban job creation program and food assistance.
environmental challenges
World Bank has made a programmatic loan to support Peru’s environmental effort
Traffic accidents cost Peru about 1.5% of its annual GDP
to design and put in practice a road and safety program
"It is consired an Emerging Market according to the MSCI"
36.2% of its total population is poor, including 12.6% that is extremely poor
Services account for 53% of Peruvian gross domestic product, followed by manufacturing (22.3%), extractive industries (15%), and taxes (9.7%)
increase of economy = China
2008 : +11,2%
$31,236 billions
62,1% = miner sector
Other main exports
copper, gold, zinc, textile, fishing products
Main partners
USA, China, Brazil, Chili
growth due to
increase of international prices of Peru production
increase of production
Creation of COPROBA (Comisión Nacional de Productos Bandera) by the government
6th in term of economic growth
5th in term of export growth
2nd latin america country in term of
international market
attractive for foreign investors?
Production ranking
1st world rank
mining industry (silver),asperges, fish flour, paprika
2nd world rank
6th world rank
4th world rank
other mining (zinc...)
1st productor in Latin America
but : not used as well
Full transcript