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Country facts
| Capital city: |
Lima |
| Surface area: |
1,285,000 sq km |
| Population: |
27.6 million |
| Official language(s): |
Spanish, Quechua, Aymara |
| Government: |
Federal Republic |
| Head of State & Head of Government: |
H.E. President Mr Alan García |
| Australian exports to Peru: |
A$84 million |
| Australian imports from Peru: |
A$142 million |
| Peru's principal export destinations: |
USA, China, Switzerland |
| Peru's principal import sources: |
USA, Brazil, China | (Source: Department of Foreign Affairs and Trade - Country economic fact sheet) |
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Economic climate
Peruvian national finances are managed by the Central Bank and Ministry of Finance, and coordinated closely with the International Monetary Fund and World Bank.
Key economic indicators and statistics for 2007:
- GDP – US$101.5 billion
- GPD per capita – US$3,616
- Real GDP growth – 8.4 per cent
- Inflation – 2.8 per cent
(Source: Department of Foreign Affairs and Trade - Country economic fact sheet) |
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Political climate
The Peruvian Presidential Elections were held in April 2006 and Dr Alán García was inaugurated on 28 July 2006. García took over from Alejandro Toledo, founder of the Perú Posible ('Peru Possible') party, who was narrowly elected president in July 2001 after former President Alberto Fujimori fled to Japan.
Despite poor popularity ratings and corruption scandals, Peru’s economy did grow consistently during Toledo’s term and continues to do so under Garcia with almost 9 per cent GDP reached in the first quarter of 2008. Rising inflation, the lower US dollar are areas of concern for Garcia’s government as is the battle against poverty which still sits at 40 per cent. The greatest challenge for President Garcia’s government is to distribute the wealth from the booming mining sector and growing economy to the poorest socio-economic groups.
(Source: Department of Foreign Affairs and Trade - Country brief)
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Trade relations and statistics
Australia’s trading connections with Peru are steadily increasing. The relationship is improved by Peru’s growing attractiveness as a destination for mining investment and exports of mining services and equipment. Australian investment is estimated at US$1.7 billion, placing Australia among Peru’s top 10 investors, accounted largely by the BHP investment in the Antamina copper mine, Xstrata’s investment in Las bambas and Tintaya mines and Rio Tinto’s mining project La Granja.
A key strategy of Peru’s integration into the global economy has been its active approach to regional integration. It is a member of the Andean Community, which allows many products to move among country members (Peru, Bolivia, Colombia, Ecuador, and Venezuela) with no duty.
Peru is a key member of the Andean Community, has FTAs with Chile and Bolivia and signed an FTA with Thailand in November 2005. An FTA with the USA, which was signed in 2006 and ratified by the Peruvian Congress that year, has been approved by both Houses in the United States. The Peru-USA FTA will replace an existing trade promotion agreement, the Andean Trade Preference and Drug Eradication Act (ATPDEA), which expired in December 2006, was renewed for six months. The ATPDEA currently gives Peru tariff privileges on some 6,000 products. Peru also finalised an FTA with Singapore in September 2007. Peru has emphasised the importance of linking its prosperity to the global economy. Trade barriers have been cut, all direct subsidies to exporters and domestic producers have been eliminated, and equal treatment has been granted to foreign and domestic investors.
Importantly Peru hosts APEC 2008 (directly after Australia) and became a member of the cairns Group of Agricultural powers with Australia’s support in 2007.
Major Australian exports to Peru (2006-07)*:
- Milk and cream – A$4 million
- Toys, games & sporting goods - A$3 million
- Measuring and controlling instruments – A$3 million
- Specialised machinery – A$3 million
*Includes A$47 million of confidential items, 56 per cent of total exports
Major Australian imports to Peru (2006-07):
- Zinc ores and concentrates – A$79 million
- Animal feed – A$27 million
- Animal oils and fats – A$8 million
- Preserved vegetables – A$6 million
(Source: Department of Foreign Affairs and Trade - Country economic fact sheet) |
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