Peru, a country of 32.8 million people, is one of Latin America’s fastest-growing economies. It has rich deposits of copper, gold, silver, lead, zinc, natural gas and petroleum. It is also a very diverse country due to climatic, natural and cultural variations of its regions. 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 mainly in the mountainous areas, and Peru’s coastal waters provide excellent fishing grounds.
Mining is the dominant sector of the Peruvian economy. Substantial additional investment has flowed to the sector over the past 20 years. As a result, there has been an increase in exploration and development activities. Peru is among the major producers of mineral commodities in the world. They account for nearly 60% of the country´s total exports. Copper and gold are the most important mineral exports by value.
In recent years, Peru has achieved significant advances in social and development indicators as well as in macroeconomic performance, with very dynamic GDP growth rates, reduction of external debt, a stable exchange rate and low inflation. Peru’s rapid expansion has helped to reduce the national poverty rate from 48.5% in 2004, to 20.5% of its total population in 2018. Extreme poverty declined from 17.4% to 2.8% over the same period.
The country has had continuous economic and political stability since the early 1990s. Peru has been one of the region’s fastest-growing economies, over the past two decades, in a context of low inflation. Prudent macroeconomic policies, investor-friendly market policies and the government’s aggressive trade liberalization strategies combined to create a scenario of high growth and low inflation.