Confidus Solutions logotype

Confidus Solutions

Economy of Peru

Peru is considered to be a developing nation. The developmental stage of a nation is determined by a number of factors including, but not limited to, economic prosperity, life expectancy, income equality, and quality of life. As a developing nation, Peru may not be able to offer consistent social services to its citizens. These social services may include things like public education, reliable healthcare, and law enforcement. Citizens of developing nations may have lower life expectancies than citizens of developed nations. Each year, Peru exports around $41.48 billion and imports roughly $42.13 billion. 3.6% of population in the country are unemployed. The total number of unemployed people in Peru is 1,171,865. In Peru, 20.7% of the population lives below the poverty line. The percentage of citizens living below the poverty line in Peru is fairly high, but is not reason for complete concern with regard to investments. Potential financial backers should look at other economic markers, including GDP, urbanization rate, and strength of currency, before making any decisions regarding investments. Government expenditure on education is 2.7% of GDP. The Gini Index of the country is 45.3. Peru is experiencing poor equality. The gap between the richest and poorest citizens in this country is quite noticeable. Peru has a Human Development Index (HDI) of 0.737. Peru has an upper medium HDI score. This indicates that the majority of citizens will be able to attain a desirable life, though some citizens will not be able to achieve high living standards. The Global Peace Index (GPI) for Peru is 2.029. The strength of legal rights index for Peru is 8. Overall, it is considered to be rather adequate - bancrupcy and collateral laws are able to protect the rights of borrowers and lenders at least decently; credit information is msotly sufficient and generally available.

Currency

The currency of Peru is Peruvian sol. The plural form of the word Peruvian sol is nuevos soles. The symbol used for this currency is S/., and it is abbreviated as PEN. The Peruvian sol is divided into Centimo; there are 100 in one sol.

Credit rating

The depth of credit information index for Peru is 8, which means that information is mostly sufficient and quite detailed; accessibility is not a problem. According to the S&P credit-rating agency, Peru has a credit rating score of BBB+, and the prospects of this rating are stable. According to the Fitch credit-rating agency, Peru has a credit rating score of BBB+, and the prospects of this rating are stable. According to the Moody's credit-rating agency, Peru has a credit rating score of A3, and the prospects of this rating are stable.

Central bank

In Peru, the institution that manages the state's currency, money supply, and interest rates is called Central Reserve Bank of Peru. Locally, the central bank of Peru is called Banco Central de Reserva del Perú. The average deposit interest rate offered by local banks in Peru is 2.3%.

Public debt

Peru has a government debt of 49% of the country's Gross Domestic Product (GDP), as assessed in 2012.

Tax information

The corporate tax in Peru is set at 30%. Personal income tax ranges from 0% to 30%, depending on your specific situation and income level. VAT in Peru is 18%.

Finances

The total Gross Domestic Product (GDP) assessed as Purchasing Power Parity (PPP) in Peru is $372694 billion. The Gross Domestic Product (GDP) assessed as Purchasing Power Parity (PPP) per capita in Peru was last recorded at $11 million. PPP in Peru is considered to be below average when compared to other countries. Below average PPP indicates that citizens in this country find it difficult to purchase local goods. Local goods can include food, shelter, clothing, health care, personal care, essential furnishings, transportation and communication, laundry, and various types of insurance. Countries with below average PPP are dangerous locations for investments. The total Gross Domestic Product (GDP) in Peru is 200,269 billion. Based on this statistic, Peru is considered to have a medium economy. Countries with medium economies support an average number of industries and opportunities for investment. It should not be too difficult to find worthwhile investment opportunities in medium economies. The Gross Domestic Product (GDP) per capita in Peru was last recorded at $6 million. The average citizen in Peru has very low wealth. Countries with very low wealth per capita often have lower life expectancies and dramatically lower quality of living among citizens. It can be very difficult to find highly skilled workers in countries with very low wealth, as it is difficult for citizens to obtain the requisite education needed for specialized industries. However, labor can be found for very low rates when compared with countries with higher wealth per capita. GDP Annual Growth Rate in Peru averaged 3.6% in 2014. According to this percentage, Peru is currently experiencing modest growth. Countries that are experiencing modest growth offer safe opportunities for investment; their expanding economy indicates that businesses, jobs, and income will expand accordingly. To read more about financial information click on finances of Peru.

Industry

Major industries in the country are mining and refining of minerals, steel, metal fabrication, petroleum extraction and refining, natural gas and natural gas liquefaction, fishing and fish processing, cement, glass, textiles, clothing, food processing, beer, soft drinks, rubber, machinery, electrical machinery, chemicals, furniture. The total labor force of Peru is 17,902,670 people, wherein 3.6% of population in the country are unemployed. The total number of unemployed people in Peru is 1,171,865. The Industrial Production growth rate of Peru is 8.5%.To read more about industrial information within Peru click on industry of Peru.

Agriculture

There are 28800 km2 of arable land in Peru, and it comprises 2% of the country's total territory. There are 33500 km2 of cultivated land in Peru. The country's major agricultural crops and products are asparagus, coffee, cocoa, cotton, sugarcane, rice, potatoes, corn, plantains, grapes, oranges, pineapples, guavas, bananas, apples, lemons, pears, coca, tomatoes, mango, barley, medicinal plants, palm oil, marigold, onion, wheat, dry beans, poultry, beef, dairy products, fish, guinea pigs.To read more about agriculture click on agriculture of Peru.