Development Challenges
The Peruvian government has continued its policy of gradual economic liberalization in recent years. In 2011, Peru was said to have one of the world’s fastest-growing economies. Principally based on services, followed by the manufacturing of textiles and extractive industries such as agriculture, fishing and mining, the economic growth has been fueled by macroeconomic stability, improved terms of trade, rising investment and consumption. Peru’s main exports are copper, gold, zinc, textiles, and fish meal. However, Peru faces development challenges, including:
- Poverty and high levels of inequality
- Underemployment
- Corruption
- Growing cocaine production
- Poor infrastructure
- Informal economy
- Natural resources depletion and deforestation
- High dependent on minerals and metals exports and imported foodstuffs that subjects the economy to fluctuations in world prices
Key Trade Issues
Government Priorities
- To promote tourism
- To reduce the national poverty rate
- To continue Peru’s free-trade path
- To increase regional and international integration especially with the United States, Canada, Singapore, China, Korea, and Japan
- To continue attracting foreign investment
- To enhance competitiveness
- To ensure a smooth democratic political transition