Economy of Peru

Peru is classified as upper middle income by the World Bank[8] and is the 40th largest in the
world by total GDP.[9] Peru is one of the world's fastest-growing economies with a 2012 GDP
growth rate of 6.3%.[10] It currently has a high human development index of 0.741 and per capita
GDP above $12,000 by PPP.[11]

The core of the current sound economic performance of the country is a combination of:

 Macroeconomic stability

 Prudent fiscal spending

 High international reserve accumulation

 External debt reduction

 Achievement of investment grade status

 Fiscal surpluses

All of these factors have enabled Peru to make great strides in development, with improvement
in government finances, poverty reduction and progress in social sectors. [12] Poverty has
decreased dramatically in the past decade, from nearly 60% in 2004 to 25.8% in 2012. [13]
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 has sustained the downward trend in inequality of
opportunities.[14] Its economy is diversified, although commodity exports still make up a
significant proportion of economic activity and thus 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